1. Sumitomo Forestry Co., a Japanese homebuilder and timber producer, plans to spend 360 billion yen ($2.9 billion) in 10 years to buy local real estate and foreign forests
2. It plans to reduce its reliance on home building (because Japan's population expected to shrink) by investing in foreign timber plantations and in Japan's real estate market as land prices rose for the first time in 16 years.
3. It will spend 160 billion yen overseas over a decade to secure timber supplies.
4. It will invest 50 billion yen over the next five years and 150 billion yen in the following five years to acquire land and develop residential properties and nursing homes in Japan.
5. It plans to buy 80 billion yen worth of assets in Oceania and North America over the next five years.
6. It plans to finance investments using cash generated each year and by borrowings from banks, as well as possibly through bond sales.
Real-time adjustments to changing demand patterns = more sustained revenue
[Click here for full story at: BLOOMBERG.COM]
Thursday, June 21, 2007
REVENUE STRATEGY - TATA MOTORS
1. Tata Motors Ltd., India's biggest maker of trucks and buses, sold $450 million of bonds overseas to fund developing new cars and commercial vehicles and meet its plan of spending 120 billion rupees in the next four years to take on competition from Navistar Inc. and Hyundai Motor Co. that are expanding in India.
2. The five-year bonds can be converted into local shares at 960.96 rupees at a conversion premium of 40 percent from the stock's closing yesterday.
Without new models it is hard to sustain revenue in the automobile industry.
[Click here for full story at: BLOOMBERG.COM]
2. The five-year bonds can be converted into local shares at 960.96 rupees at a conversion premium of 40 percent from the stock's closing yesterday.
Without new models it is hard to sustain revenue in the automobile industry.
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - ELECTRIM
1. Elektrim SA, a Polish telecommunications and power group, is demanding 2 billion zloty ($705 million) in damages from the Polish government in connection with a privatization agreement signed in 1999. (The government failed to meet the obligations of the contracts signed with Elektrim concerning sales of Zespol Elektrowni Patnow Adamow Konin SA, a Polish power plant).
2. It has threatened to take the matter to court if it doesn't get the payment by June 27.
Seek (in the fine print) and you shall (sometimes) find (revenue)
[Click here for full story at: BLOOMBERG.COM]
2. It has threatened to take the matter to court if it doesn't get the payment by June 27.
Seek (in the fine print) and you shall (sometimes) find (revenue)
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - CONTINENTAL
1. Continental AG, the world's fourth-biggest tiremaker, is working on three to five relatively big acquisitions apart from Siemens AG's VDO automotive unit
2. It would consider buying VDO even if Siemens proceeds with its preferred option of holding an initial public offering for the automotive unit, because together they would about match the size of Robert Bosch GmbH, currently the world's biggest car-parts maker.
Competition can be self-improving
[Click here for full story at: BLOOMBERG.COM]
2. It would consider buying VDO even if Siemens proceeds with its preferred option of holding an initial public offering for the automotive unit, because together they would about match the size of Robert Bosch GmbH, currently the world's biggest car-parts maker.
Competition can be self-improving
[Click here for full story at: BLOOMBERG.COM]
EXPENDITURE STRATEGY - JESSOPS
Photographic retailer Jessops had pre-tax losses of £25.2m for the six months to 1 April.
So it plans to save £15m by:
a) closing 81 and relocating 3 of its High Street stores and
b) cutting 550 jobs.
Some shutters down + some lay offs = some expenditure reprieve
[Click here for full story at: BBCNEWS.COM]
So it plans to save £15m by:
a) closing 81 and relocating 3 of its High Street stores and
b) cutting 550 jobs.
Some shutters down + some lay offs = some expenditure reprieve
[Click here for full story at: BBCNEWS.COM]
REVENUE STRATEGY - CEZ
1. CEZ AS, the Czech Republic's biggest power company, is planning to start trading natural gas and financial coal contracts this year to benefit from price movements and to hedge supplies.
2. It has boosted staff at its Prague trading office this year and is looking for more traders. The trading expansion increases the focus on cross- commodity deals as markets become more interlinked and allows the opportunity to play on spreads between different commodities.
3. It plans to enter the continental gas markets at the Dutch, Belgian and European Energy exchanges
4. It intends to expand trading in emission permits before the end of the year to include Certified Emission Reduction credits. CERS are based on projects in the developing world that reduce emissions of greenhouse gases.
5. It also plans to team up with partners to develop projects
6. It is planning a natural gas-fired plant in the Czech Republic to help meet peak-time demand.
Clairvoyance is the magic wand of revenue
[Click here for full story at: BLOOMBERG.COM]
2. It has boosted staff at its Prague trading office this year and is looking for more traders. The trading expansion increases the focus on cross- commodity deals as markets become more interlinked and allows the opportunity to play on spreads between different commodities.
3. It plans to enter the continental gas markets at the Dutch, Belgian and European Energy exchanges
4. It intends to expand trading in emission permits before the end of the year to include Certified Emission Reduction credits. CERS are based on projects in the developing world that reduce emissions of greenhouse gases.
5. It also plans to team up with partners to develop projects
6. It is planning a natural gas-fired plant in the Czech Republic to help meet peak-time demand.
Clairvoyance is the magic wand of revenue
[Click here for full story at: BLOOMBERG.COM]
EXPENDITURE STRATEGY - RELIANCE COMMUNICATIONS
Reliance Communications Ltd., India's second-biggest mobile-phone company, will pay less interest on a $1 billion loan after its profit more than doubled to a record. It will pay about half what it pays on $500 million borrowed last year
[Banks are charging less interest because the company's profitability is improving its ability to pay debt !!
(Banks will be paid additional fees, including underwriting income, for participating in the loan).]
It pays to be profitable!
[Click here for full story at: BLOOMBERG.COM]
[Banks are charging less interest because the company's profitability is improving its ability to pay debt !!
(Banks will be paid additional fees, including underwriting income, for participating in the loan).]
It pays to be profitable!
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - RELIANCE COMMUNICATIONS
1. Reliance Communications is spending $2.5 billion this year to extend its network in India
2. It plans to sell stakes in a unit that owns its wireless towers to raise more funds.
Expanding in an under-penetrated market = easier revenue
[Click here for full story at: BLOOMBERG.COM]
2. It plans to sell stakes in a unit that owns its wireless towers to raise more funds.
Expanding in an under-penetrated market = easier revenue
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - LATTELECOM
1. Lattelecom SIA, Latvia's biggest phone company, may start mobile services and expand abroad after the preliminary approval of a 290 million-lati ($559 million) management buyout including the 49 percent stake owned by TeliaSonera AB, the Nordic region's biggest telephone company.
2. Its management has three months to raise the cash.
3. It aims to finance 75 percent of the buyout with debt, and 25 percent with equity, using money from management, employees and private equity.
Management taking over 51% government co = increased revenue?
[Click here for full story at: BLOOMBERG.COM]
2. Its management has three months to raise the cash.
3. It aims to finance 75 percent of the buyout with debt, and 25 percent with equity, using money from management, employees and private equity.
Management taking over 51% government co = increased revenue?
[Click here for full story at: BLOOMBERG.COM]
EXPENDITURE STRATEGY - ACTIONS SEMICONDUCTOR
In March 2006, the U.S. International Trade Commission said Actions Semiconductor had infringed on two SigmaTel patents for an audio-processing chip and imposed a 29-cent tariff on each chip when sold in the U.S.
1. Actions Semiconductor Co., a Chinese maker of chips for portable electronics, settled all patent litigation with SigmaTel Inc., a maker of mixed-signal multimedia semiconductors, and will begin importing its products to the U.S.
2. The companies agreed to a cross- licensing deal, which will allow Actions' products to be imported to the U.S. without restrictions.
Avoid stepping on others toes. It is expensive.
[Click here for full story at: BLOOMBERG.COM]
1. Actions Semiconductor Co., a Chinese maker of chips for portable electronics, settled all patent litigation with SigmaTel Inc., a maker of mixed-signal multimedia semiconductors, and will begin importing its products to the U.S.
2. The companies agreed to a cross- licensing deal, which will allow Actions' products to be imported to the U.S. without restrictions.
Avoid stepping on others toes. It is expensive.
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - CHINA LIFE INSURANCE
China Life Insurance Co., the nation's biggest insurer, will get around the restrictions barring Chinese insurers from investing in property by a partnership between its China Life Asset Management Co. and U.S. private equity firm Aetos Capital LLC to invest in the Chinese property market.
Where there is a law there may be a loophole for revenue.
[Click here for full story at: BLOOMBERG.COM]
Where there is a law there may be a loophole for revenue.
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - JET AIRWAYS
1. Jet Airways (India) Ltd., the nation's biggest carrier, will add 13 new Avions de Transport Regional propeller aircraft to serve on routes to smaller cities that aren't popular enough to fill larger jet planes.
2. It will lease six 75-seater ATR 72-500s from TAT Group
3. It has also ordered another seven that it intends to sell to a lessor before delivery.
Matching products with customers = sustainable revenue
[Click here for full story at: BLOOMBERG.COM]
2. It will lease six 75-seater ATR 72-500s from TAT Group
3. It has also ordered another seven that it intends to sell to a lessor before delivery.
Matching products with customers = sustainable revenue
[Click here for full story at: BLOOMBERG.COM]
Wednesday, June 20, 2007
REVENUE STRATEGY - HENNES & MAURITZ
1. Hennes & Mauritz AB, Europe's second-largest clothing retailer, added shops and hired celebrity designers to compete with Inditex SA, which surpassed the Swedish company as Europe's biggest clothing seller two years ago.
2. Its M by Madonna range, such as silk dresses priced at $69.90, went on sale in March. Same-store revenue gained 17 percent in March, the fastest pace in at least 15 months, as the Madonna range hit store shelves. Sales growth fell to 8 percent in April.
3. It will collaborate with designer Roberto Cavalli.
4. It will continue to look for more collaborations to boost sales
5. It is adding its first stores in Asia. China will be an important market. It opened stores in Hong Kong and Shanghai. It is preparing to expand into Japan next year
6. It opened stores from Slovakia to Qatar during its second quarter. It added 83 outlets in its first half, and will open 95 shops during the rest of the fiscal year, mainly in the U.S, France, Spain, Germany, the U.K. and Italy.
7. It buys more than 60 percent of its clothes in Asia and sells them at about double the price.
More outlets + more celebrity designers = more revenue
[Click here for full story at: BLOOMBERG.COM]
2. Its M by Madonna range, such as silk dresses priced at $69.90, went on sale in March. Same-store revenue gained 17 percent in March, the fastest pace in at least 15 months, as the Madonna range hit store shelves. Sales growth fell to 8 percent in April.
3. It will collaborate with designer Roberto Cavalli.
4. It will continue to look for more collaborations to boost sales
5. It is adding its first stores in Asia. China will be an important market. It opened stores in Hong Kong and Shanghai. It is preparing to expand into Japan next year
6. It opened stores from Slovakia to Qatar during its second quarter. It added 83 outlets in its first half, and will open 95 shops during the rest of the fiscal year, mainly in the U.S, France, Spain, Germany, the U.K. and Italy.
7. It buys more than 60 percent of its clothes in Asia and sells them at about double the price.
More outlets + more celebrity designers = more revenue
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - GOOGLE
Google’s YouTube’s revenue model is uncertain and lagging way behind television:
But:
1. It announced new customized versions of the site in the Netherlands, Poland, France, Spain, Italy, Ireland, England, Japan, and Brazil. It is aiming to entrench its position around the world.
2. The long-term goal is to drive YouTube beyond PC screens and onto other video displays: mobile phones, handheld players, and most important, the living room TV. So it recently inked a deal with Apple to put YouTube videos on Apple TV
3. It is experimenting with ways to present ads that are more localized and entertaining.
Sometimes revenue emanates from keeping the faith in the latest human fetish
[Click here for full story at: BLOOMBERG.COM]
But:
1. It announced new customized versions of the site in the Netherlands, Poland, France, Spain, Italy, Ireland, England, Japan, and Brazil. It is aiming to entrench its position around the world.
2. The long-term goal is to drive YouTube beyond PC screens and onto other video displays: mobile phones, handheld players, and most important, the living room TV. So it recently inked a deal with Apple to put YouTube videos on Apple TV
3. It is experimenting with ways to present ads that are more localized and entertaining.
Sometimes revenue emanates from keeping the faith in the latest human fetish
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - FEDEX
1. FedEx Corp., the world's largest air- cargo carrier, succeeded in expanding air freight delivery business in the U.K., China and India. It is relying on growth overseas to help offset an industrywide contraction in U.S. air-freight volumes as U.S. economic growth slows.
2. In May, it started overnight delivery to 19 cities on China's east coast
3. This month it started offering day-specific delivery to 200 Chinese cities.
Is China the vortex of every new revenue rush?
[Click here for full story at: BLOOMBERG.COM]
2. In May, it started overnight delivery to 19 cities on China's east coast
3. This month it started offering day-specific delivery to 200 Chinese cities.
Is China the vortex of every new revenue rush?
[Click here for full story at: BLOOMBERG.COM]
EXPENDITURE STRATEGY - HOME DEPOT
1. Home Depot Inc., the world's largest home-improvement retailer, is reversing previous management plans to expand HD Supply and agreed to sell its contractor-supplies unit to three buyout firms for $10.3 billion amid the most severe housing recession in 16 years
2. It may purchase a record $22.5 billion or 30 percent of its stock to reverse two years of declining shares.
3. It will finance the buyback with proceeds from the sale, existing cash and $12 billion of bonds.
4. It increased the number of directors needed to approve executive compensation and agreed to disclose some political donations for the first time.
Should businesses have special task forces for continuously paring down the latest unproductive expenses not always immediately visible to pre-occupied line managers?
[Click here for full story at: BLOOMBERG.COM]
2. It may purchase a record $22.5 billion or 30 percent of its stock to reverse two years of declining shares.
3. It will finance the buyback with proceeds from the sale, existing cash and $12 billion of bonds.
4. It increased the number of directors needed to approve executive compensation and agreed to disclose some political donations for the first time.
Should businesses have special task forces for continuously paring down the latest unproductive expenses not always immediately visible to pre-occupied line managers?
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - HEDGE FUNDS
1. Hedge funds like Ellington Management Group LLC are “disintermediating”, that is cutting mortgage firms like Bear Stearns Cos. out of the middle and buying mortgages on their own, eating into fees that mortgage firms earn from securitizing mortgages.
2. Instead of buying such bonds at markups of 1 percent or more, Ellington expects to make better returns by taking over bad debts and pressing borrowers to pay up.
3. It is targeting delinquent or poorly written loans. Bad bets on mortgages have discouraged bankers from bidding, leaving firms like Ellington Management Group to snap up home loans for as little as 30 cents on the dollar.
4. Ellington has bought mortgages this year with an unpaid balance of more than $3 billion, including $170 million purchased for about $58 million from New Century Financial Corp.
5. It signed a letter of intent to buy Fremont General Corp.'s residential-mortgage business, including employees responsible for collecting on the loans.
(But wringing returns from bad loans may get tougher as two dozen state lawmakers consider more than 70 bills to protect homeowners)
Removing middlemen = more revenue
[Click here for full story at: BLOOMBERG.COM]
2. Instead of buying such bonds at markups of 1 percent or more, Ellington expects to make better returns by taking over bad debts and pressing borrowers to pay up.
3. It is targeting delinquent or poorly written loans. Bad bets on mortgages have discouraged bankers from bidding, leaving firms like Ellington Management Group to snap up home loans for as little as 30 cents on the dollar.
4. Ellington has bought mortgages this year with an unpaid balance of more than $3 billion, including $170 million purchased for about $58 million from New Century Financial Corp.
5. It signed a letter of intent to buy Fremont General Corp.'s residential-mortgage business, including employees responsible for collecting on the loans.
(But wringing returns from bad loans may get tougher as two dozen state lawmakers consider more than 70 bills to protect homeowners)
Removing middlemen = more revenue
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - MICROSOFT
Microsoft Corp. agreed to buy a stake in Sichuan Changhong Electric Co., China's second-biggest TV maker as part of plans to develop software that connects televisions to the Internet for China.
Because:
1. Microsoft is losing U.S. users for software that connects televisions to the Internet (Comcast Corp. will stop using Microsoft's applications for Internet TV services in Washington State).
2. China may pass the U.S. this year to become the market with the most high-speed Internet connections in the world, a service that enables users to watch films and TV shows over the Web.
3. Sichuan Changhong is looking for new products like Internet TVs because demand for their cathode-ray tube TVs is declining.
They will jointly develop computers and TVs that connect to the Web.
1. Microsoft will buy the 15 million new Sichuan Changhong shares for 6.27 yuan each. Microsoft agreed not to sell the shares for three years
2. Microsoft will provide Sichuan Changhong with software technologies to help develop electronics products.
3. Sichuan Changhong will use money from the share sale to Microsoft to help buy 75 percent of Dutch company Sterope Investments BV, owner of South Korean plasma-panel maker Orion PDP Co. 4. Sichuan Changhong will raise 2.5 billion yuan for the acquisition by selling 400 million new shares to 10 institutional investors.
Revenue is in knocking open another door when one door closes, and converging to diversify
[Click here for full story at: BLOOMBERG.COM]
Because:
1. Microsoft is losing U.S. users for software that connects televisions to the Internet (Comcast Corp. will stop using Microsoft's applications for Internet TV services in Washington State).
2. China may pass the U.S. this year to become the market with the most high-speed Internet connections in the world, a service that enables users to watch films and TV shows over the Web.
3. Sichuan Changhong is looking for new products like Internet TVs because demand for their cathode-ray tube TVs is declining.
They will jointly develop computers and TVs that connect to the Web.
1. Microsoft will buy the 15 million new Sichuan Changhong shares for 6.27 yuan each. Microsoft agreed not to sell the shares for three years
2. Microsoft will provide Sichuan Changhong with software technologies to help develop electronics products.
3. Sichuan Changhong will use money from the share sale to Microsoft to help buy 75 percent of Dutch company Sterope Investments BV, owner of South Korean plasma-panel maker Orion PDP Co. 4. Sichuan Changhong will raise 2.5 billion yuan for the acquisition by selling 400 million new shares to 10 institutional investors.
Revenue is in knocking open another door when one door closes, and converging to diversify
[Click here for full story at: BLOOMBERG.COM]
EXPENDITURE STRATEGY - X5 RETAIL
1. X5 Retail Group NV, Russia's largest supermarket chain, plans to sell 9 billion rubles ($345 million) of bonds next month partly to refinance debt to simplify borrowings structure, decrease costs of debt servicing, increase brand loyalty among professional investors.
2. It will buy back 4.5 billion rubles of bonds sold by a unit of its Pyaterochka chain, and repurchase 1.5 billion rubles of bonds in ZAO Trade House Perekrestok.
3. It will offer to buy back the bonds within three years at their nominal value
Refinancing debt can reduce expenses especially if you have combed through the fine print
[Click here for full story at: BLOOMBERG.COM]
2. It will buy back 4.5 billion rubles of bonds sold by a unit of its Pyaterochka chain, and repurchase 1.5 billion rubles of bonds in ZAO Trade House Perekrestok.
3. It will offer to buy back the bonds within three years at their nominal value
Refinancing debt can reduce expenses especially if you have combed through the fine print
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - X5 RETAIL
1. X5 Retail Group NV, Russia's largest supermarket chain, plans to sell 9 billion rubles ($345 million) of bonds next month partly to fund expansion.
2. It will expand through store openings and acquisitions to tap rising Russian spending.
3. It is bidding for the Korzinka chain of 21 outlets in Lipetsk, central Russia for $110 million.
4. It also announced plans to raise $1 billion this year through a secondary share sale to fund expansion. It plans to increase the size of both its main chains and also develop a superstore network.
Expanding in an expanding economy = revenue
[Click here for full story at: BLOOMBERG.COM]
2. It will expand through store openings and acquisitions to tap rising Russian spending.
3. It is bidding for the Korzinka chain of 21 outlets in Lipetsk, central Russia for $110 million.
4. It also announced plans to raise $1 billion this year through a secondary share sale to fund expansion. It plans to increase the size of both its main chains and also develop a superstore network.
Expanding in an expanding economy = revenue
[Click here for full story at: BLOOMBERG.COM]
Tuesday, June 19, 2007
EXPENDITURE STRATEGY - CADBURY SCHWEPPES
1. Cadbury Schweppes Plc, the world's biggest candy company, plans to cut 7,500 jobs and sell the U.S. drinks unit that makes Dr Pepper and 7-Up to shore up profit and raise funds for expansion. The job cuts will help increase profit margins from about 10 percent to the “mid teens” by 2011.
2. It may auction the division, pushing the price above the rumored 8 billion pounds
3. Its sale of the drinks unit would result in a return of capital to shareholders.
4. It plans to close about 15 percent of its confectionery factories.
5. It sold its European soft-drinks division to buyout firms Blackstone and Lion Capital LLP last year for $2.2 billion.
6. It will split its Europe, Middle East and Africa unit and move out of its headquarters in London's Mayfair district to improve profitability.
7. It set aside money to pay an impairment charge following an accounting scandal at its Nigerian unit.
8. It will spend about £450m in a one-off charge for the reorganization. It will rename itself simply Cadbury after the sale of the drinks unit.
If you take care of the pennies the pounds will take care of themselves?
[Click here for full story at: BLOOMBERG.COM]
2. It may auction the division, pushing the price above the rumored 8 billion pounds
3. Its sale of the drinks unit would result in a return of capital to shareholders.
4. It plans to close about 15 percent of its confectionery factories.
5. It sold its European soft-drinks division to buyout firms Blackstone and Lion Capital LLP last year for $2.2 billion.
6. It will split its Europe, Middle East and Africa unit and move out of its headquarters in London's Mayfair district to improve profitability.
7. It set aside money to pay an impairment charge following an accounting scandal at its Nigerian unit.
8. It will spend about £450m in a one-off charge for the reorganization. It will rename itself simply Cadbury after the sale of the drinks unit.
If you take care of the pennies the pounds will take care of themselves?
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - CADBURY SCHWEPPES
1. Cadbury Schweppes Plc, the world's biggest candy company, has announced candy purchases in Turkey, Romania and Japan,
2. It plans “bolt-on” deals rather than larger acquisitions.
3. It boosted sales at the beverage unit rose 44 percent to 2.57 billion pounds in 2006, by acquisitions, as Cadbury spent $420 million to buy bottlers to help streamline U.S. distribution.
4. It has acquired Turkey's Intergum for $450 million and a 93 percent stake in Romanian candy maker Kandia-Excelent to expand in emerging markets. 5. It will buy Sansei Foods Ltd., a Japanese maker of sugar-free throat sweets.
More revenue is certain if you conquer more markets and more products
[Click here for full story at: BLOOMBERG.COM]
2. It plans “bolt-on” deals rather than larger acquisitions.
3. It boosted sales at the beverage unit rose 44 percent to 2.57 billion pounds in 2006, by acquisitions, as Cadbury spent $420 million to buy bottlers to help streamline U.S. distribution.
4. It has acquired Turkey's Intergum for $450 million and a 93 percent stake in Romanian candy maker Kandia-Excelent to expand in emerging markets. 5. It will buy Sansei Foods Ltd., a Japanese maker of sugar-free throat sweets.
More revenue is certain if you conquer more markets and more products
[Click here for full story at: BLOOMBERG.COM]
EXPENDITURE STRATEGY - KARSTADTQUELLE
1. KarstadtQuelle AG has sold property to pay down debt
2. It has disposed of less profitable stores
3. It is spinning off the Neckermann mail-order unit. 40 and 50 percent of the unit will be sold to financial investors in the second half.
Expenses are optimized when costly debt is paid off unprofitable businesses disposed
[Click here for full story at: BLOOMBERG.COM]
2. It has disposed of less profitable stores
3. It is spinning off the Neckermann mail-order unit. 40 and 50 percent of the unit will be sold to financial investors in the second half.
Expenses are optimized when costly debt is paid off unprofitable businesses disposed
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - KARSTADTQUELLE
1. KarstadtQuelle AG is changing its name to Arcandor as part of an overhaul
2. In December it bought a 50 percent stake in Thomas Cook to balance its store and mail- order income with earnings from tourism.
3. Thomas Cook would merge with MyTravel Group Plc of the U.K. to fight competition from online bookings and discount airlines.
4. Last month, it agreed to buy Home Shopping Europe to increase mail-order revenue generated via television.
5. It is planning to open flagship stores under the KaDeWe or Karstadt brand in St. Petersburg, Moscow, Istanbul, Dubai and possibly Qatar.
Revenue can come from manageable diversification
[Click here for full story at: BLOOMBERG.COM]
2. In December it bought a 50 percent stake in Thomas Cook to balance its store and mail- order income with earnings from tourism.
3. Thomas Cook would merge with MyTravel Group Plc of the U.K. to fight competition from online bookings and discount airlines.
4. Last month, it agreed to buy Home Shopping Europe to increase mail-order revenue generated via television.
5. It is planning to open flagship stores under the KaDeWe or Karstadt brand in St. Petersburg, Moscow, Istanbul, Dubai and possibly Qatar.
Revenue can come from manageable diversification
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - ING GROEP
1. ING Groep NV, the Netherlands' biggest financial-services company, agreed to buy Oyak Bank of Turkey for $2.67 billion because Oyak Bank established in 1984 has 1.2 million “active retail customers” and 360 branches and about 5,000 employees in Turkey, whose economy has grown at an annual average pace of more than 7 percent since 2002 and bank loans to consumers in Turkey increased to $39.5 billion at the end of May, more than 20 times the level four years earlier.
2. It will integrate Oyak Bank into its retail banking business.
More revenue is in growing economies.
[Click here for full story at: BLOOMBERG.COM]
2. It will integrate Oyak Bank into its retail banking business.
More revenue is in growing economies.
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - WHITBREAD
1. Whitbread Plc, the owner of the Premier Travel Inn budget lodging chain, is building up the lodging and cafe divisions
2. It plans to rename Premier Travel Inn as Premier Inn, which will cost 13 million pounds ($25.8 million) together with 9 million pounds of capital spending.
3. It plans to start a joint venture in India investing up to 150 million pounds, which will open 80 hotels with 12,000 rooms over the next 10 years. It aims to have several hundred hotels in India and China in five years.
4. It started building its first hotel in Dubai as part of a joint venture with Emirates Group, and has identified more sites in the Gulf region.
5. The company aims to expand Premier Travel Inn by 3,000 rooms in the U.K. this fiscal year after adding 2,500 last year and plans to have 50,000 rooms worldwide by 2010.
6. It has set a goal of tripling its Costa Cafes to 2,000 outlets in five years.
Old revenue trick: Go forth and multiply your outlets.
[Click here for full story at: BLOOMBERG.COM]
2. It plans to rename Premier Travel Inn as Premier Inn, which will cost 13 million pounds ($25.8 million) together with 9 million pounds of capital spending.
3. It plans to start a joint venture in India investing up to 150 million pounds, which will open 80 hotels with 12,000 rooms over the next 10 years. It aims to have several hundred hotels in India and China in five years.
4. It started building its first hotel in Dubai as part of a joint venture with Emirates Group, and has identified more sites in the Gulf region.
5. The company aims to expand Premier Travel Inn by 3,000 rooms in the U.K. this fiscal year after adding 2,500 last year and plans to have 50,000 rooms worldwide by 2010.
6. It has set a goal of tripling its Costa Cafes to 2,000 outlets in five years.
Old revenue trick: Go forth and multiply your outlets.
[Click here for full story at: BLOOMBERG.COM]
EXPENDITURE STRATEGY - FORD MOTOR
1. Ford is looking to sell Jaguar and Land Rover to
(a) Eliminate the risk of further losses from antiquated manufacturing facilities in Britain, onerous labor pacts, and a bloated workforce. (For the year ended Dec 31, 2006, Land Rover sales are down 13% and Jaguar down 36.5%)
(b) Use cash from the sale to accelerate its North American restructuring
2. It wants to sell the brands as a package since the engineering, purchasing, and distribution of the two brands have become interdependent as Ford has tried to find efficiencies running the businesses. Jaguars and Land Rovers are even manufactured at a common plant today.
3. It may reduce the number of far-flung dealers it has selling Fords in one retail channel and Lincoln Mercury vehicles in another. It may shut down Mercury and sell Fords and Lincoln in one channel. A second distribution channel could be Volvo and Mazda.
Dispose of products revenues with uncertain to save on their unproductive expenses
[Click here for full story at: BUSINESSWEEK.COM]
(a) Eliminate the risk of further losses from antiquated manufacturing facilities in Britain, onerous labor pacts, and a bloated workforce. (For the year ended Dec 31, 2006, Land Rover sales are down 13% and Jaguar down 36.5%)
(b) Use cash from the sale to accelerate its North American restructuring
2. It wants to sell the brands as a package since the engineering, purchasing, and distribution of the two brands have become interdependent as Ford has tried to find efficiencies running the businesses. Jaguars and Land Rovers are even manufactured at a common plant today.
3. It may reduce the number of far-flung dealers it has selling Fords in one retail channel and Lincoln Mercury vehicles in another. It may shut down Mercury and sell Fords and Lincoln in one channel. A second distribution channel could be Volvo and Mazda.
Dispose of products revenues with uncertain to save on their unproductive expenses
[Click here for full story at: BUSINESSWEEK.COM]
REVENUE STRATEGY - SYNTHETIC GENOMICS
1. Synthetic Genomics Inc., has filed controversial patents on synthetic bugs, which could make fuels such as ethanol or hydrogen. It is within weeks or months of creating the world's first free-living artificial organism - a tiny bacterium with only a few hundred genes. The benefits of such research could be enormous: not just drugs and fuels but also bugs that clean up pollution or flash when they detect explosives, plus a far deeper understanding of the basic mechanisms of biology.
2. It announced a deal with energy giant BPPLC to find and modify naturally occurring microbes that can turn coal or oil below the earth's surface into cleaner fuel.
Product differentiation = revenue
[Click here for full story at: BUSINESSWEEK.COM]
2. It announced a deal with energy giant BPPLC to find and modify naturally occurring microbes that can turn coal or oil below the earth's surface into cleaner fuel.
Product differentiation = revenue
[Click here for full story at: BUSINESSWEEK.COM]
REVENUE STRATEGY - ROYAL PHILIPS ELECTRONICS
1. Royal Philips Electronics NV, the world's largest maker of light bulbs, agreed to buy Color Kinetics Inc. for 592 million euros ($795 million) to extend its market lead in high-power light-emitting diodes, or LEDs. (Color Kinetics had sales of about $65 million last year).
2. It will pay $34 in cash for each Color Kinetics share, 14 percent more than yesterday's closing share price of $29.79. The purchase price is based on an enterprise value of 516 million euros and also includes about 76 million euros of cash on the balance sheet of Color Kinetics.
Revenue can come from finding the right business to buy out
[Click here for full story at: BLOOMBERG.COM]
2. It will pay $34 in cash for each Color Kinetics share, 14 percent more than yesterday's closing share price of $29.79. The purchase price is based on an enterprise value of 516 million euros and also includes about 76 million euros of cash on the balance sheet of Color Kinetics.
Revenue can come from finding the right business to buy out
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - STERLITE INDUSTRIES
1. Sterlite Industries (India) Ltd., the copper and zinc producer controlled by billionaire Anil Agarwal, sold $1.75 billion of stock in the U.S., the biggest overseas share sale by an Indian company.
2. The proceeds will be used to finance
(a) a 2,400-megawatt power plant in eastern Orissa state that will cost about $1.9 billion, and
(b) to buy the government's 29.5 percent stake in Hindustan Zinc Ltd
[Steelmakers including Arcelor Mittal and Posco have announced ventures in Orissa giving Sterlite bulk users for the power plant; India's economic expansion has caused electricity demand to exceed supply; India must add 70,000-megawatt capacity in the next five years to ease a shortage;
Sterlite owns 65 percent of Hindustan Zinc Ltd]
Revenue comes from fulfilling a need well
[Click here for full story at: BLOOMBERG.COM]
2. The proceeds will be used to finance
(a) a 2,400-megawatt power plant in eastern Orissa state that will cost about $1.9 billion, and
(b) to buy the government's 29.5 percent stake in Hindustan Zinc Ltd
[Steelmakers including Arcelor Mittal and Posco have announced ventures in Orissa giving Sterlite bulk users for the power plant; India's economic expansion has caused electricity demand to exceed supply; India must add 70,000-megawatt capacity in the next five years to ease a shortage;
Sterlite owns 65 percent of Hindustan Zinc Ltd]
Revenue comes from fulfilling a need well
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - YAHOO!
1. Yahoo! Inc. has inducted founder Jerry Yang as chief executive officer gearing up for a long fight with Google Inc.
2. It will hire engineers and improve the company's technology to regain ground.
3. It will focus on generating more money from its Web pages as new sites such as YouTube and Facebook compete for advertisers.
4. It reorganized in December to enable the company to make swifter decisions about products
5. It will in part dismantle the reorganization announced only six months ago.
6. It will combine the advertiser group with the audience group.
7. It is looking for a technology chief. to replace Farzad Nazem, who departed recently.
8. It has tried to tap into the frenzy for social networking with some small successes, such as Yahoo Answers, a volunteer question-and-answer service, and the purchase of the fast-rising photo-sharing service Flickr.
9. It bought the rest of Right Media, in which it purchased a 20% stake last year, but at a much higher valuation
Old revenue mantra: Find or create a need and fulfill it better than others
[Click here for full story at: BLOOMBERG.COM]
[Click here for full story at: BUSINESSWEEK.COM]
2. It will hire engineers and improve the company's technology to regain ground.
3. It will focus on generating more money from its Web pages as new sites such as YouTube and Facebook compete for advertisers.
4. It reorganized in December to enable the company to make swifter decisions about products
5. It will in part dismantle the reorganization announced only six months ago.
6. It will combine the advertiser group with the audience group.
7. It is looking for a technology chief. to replace Farzad Nazem, who departed recently.
8. It has tried to tap into the frenzy for social networking with some small successes, such as Yahoo Answers, a volunteer question-and-answer service, and the purchase of the fast-rising photo-sharing service Flickr.
9. It bought the rest of Right Media, in which it purchased a 20% stake last year, but at a much higher valuation
Old revenue mantra: Find or create a need and fulfill it better than others
[Click here for full story at: BLOOMBERG.COM]
[Click here for full story at: BUSINESSWEEK.COM]
REVENUE STRATEGY - DELL
1. Dell will open a factory in the southern Indian city of Chennai next month as India is Dell's largest-growing country in the world - the market in China is slowing down just as India is accelerating.
2. It will be able to avoid import duties that it currently pays
3. It has invested just $30 million only has plans to employ about 400 workers to make desktop computers. By the end of the year it will also make notebook PCs
4. It will be able to diversify its customer base and go after the consumer and small-business markets from its present focus on the corporate customers.
More investment, lower prices and wider customer base = more revenue
[Click here for full story at: BUSINESSWEEK.COM]
2. It will be able to avoid import duties that it currently pays
3. It has invested just $30 million only has plans to employ about 400 workers to make desktop computers. By the end of the year it will also make notebook PCs
4. It will be able to diversify its customer base and go after the consumer and small-business markets from its present focus on the corporate customers.
More investment, lower prices and wider customer base = more revenue
[Click here for full story at: BUSINESSWEEK.COM]
REVENUE STRATEGY - TESCO
1. Tesco Plc, Britain's biggest retailer, began lowering prices on more than 3,000 products from books to bicycles by as much as 34 percent starting this week, equating to 270 million pounds to stimulate growth.
2. It added about 2,000 premium products to encourage consumers to spend more, even as it reduces prices on other goods as interest rates rise.
3. It added organic cranberries and green beans, smoked herring with crushed peppercorns and “localchoice” milk bought from farmers near individual stores during the quarter as customers seek more information about the origins of their meals.
4. It is accelerating expansion outside groceries and offered 155.6 million pounds to buy Dobbies Garden Centres Plc on June 8.
5. It is adding stores outside the U.K. to gain scale and increase its bargaining position with suppliers. It operates in 13 countries from China to Poland and is scheduled to open its first U.S. stores this year. It will add 7 million square feet of store space outside the U.K. this year
Revenue is in mastering the price elasticity of demand
[Click here for full story at: BLOOMBERG.COM]
2. It added about 2,000 premium products to encourage consumers to spend more, even as it reduces prices on other goods as interest rates rise.
3. It added organic cranberries and green beans, smoked herring with crushed peppercorns and “localchoice” milk bought from farmers near individual stores during the quarter as customers seek more information about the origins of their meals.
4. It is accelerating expansion outside groceries and offered 155.6 million pounds to buy Dobbies Garden Centres Plc on June 8.
5. It is adding stores outside the U.K. to gain scale and increase its bargaining position with suppliers. It operates in 13 countries from China to Poland and is scheduled to open its first U.S. stores this year. It will add 7 million square feet of store space outside the U.K. this year
Revenue is in mastering the price elasticity of demand
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - IMMERSIVE MEDIA
1. Immersive Media has been trying to make the Web three-dimensional.
2. It developed an 11-lens camera, called a Dodeca 2360 whuch takes 11 simultaneous video or still shots, which are seamlessly stitched together by a software program so that viewers can shift continuously from one perspective to the next.
3. It has been priced at $100,000.
4. It partnered with Google (because of its tight grip on online mapping ) to fix Dodeca cameras to the roofs of cars, drive them through every street in every major city, and piece the resulting 360-degree images together with existing online maps.
5. It is trying to push the technology into new arenas, including entertainment and advertising. The benefit would be to engage viewers in an entire scene built around a product or service, where you can walk around and get different perspectives.
Product differentiation = revenue
[Click here for full story at: BUSINESSWEEK.COM]
2. It developed an 11-lens camera, called a Dodeca 2360 whuch takes 11 simultaneous video or still shots, which are seamlessly stitched together by a software program so that viewers can shift continuously from one perspective to the next.
3. It has been priced at $100,000.
4. It partnered with Google (because of its tight grip on online mapping ) to fix Dodeca cameras to the roofs of cars, drive them through every street in every major city, and piece the resulting 360-degree images together with existing online maps.
5. It is trying to push the technology into new arenas, including entertainment and advertising. The benefit would be to engage viewers in an entire scene built around a product or service, where you can walk around and get different perspectives.
Product differentiation = revenue
[Click here for full story at: BUSINESSWEEK.COM]
Monday, June 18, 2007
REVENUE STRATEGY - SAMSUNG ELECTRONICS
The semiconductor industry is seeing intensifying competition and capacity addition, driving prices and profitability downwards.
1. Samsung Electronics' semiconductor unit has even sold chips below manufacturing costs.
2. It has been placing more emphasis on developing NAND flash chips, which can store information even when the power is switched off, and are widely used in handheld products such as music players, digital cameras, and portable media players, and provide an alternative profit driver when DRAM chip prices are falling. (More costly than conventional hard drives, flash drives are faster, more reliable, and consume less power).
3. On June 14 it opened a $3.5 billion state-of-the-art NAND plant in Austin, Tex., where it already has a memory chip factory.
4. It hopes that one eventual driver of demand will be notebook PCs, which will be equipped with NAND-based drives, called solid-state drives or SSDs. Although more costly than conventional hard drives, flash drives are faster, more reliable, and consume less power
5. It has built up a superior product mix - its memory chip business is the biggest in the world.
6. It has developed the capability of delivering custom-made memory devices for game consoles; handsets doubling as music players; and high-end servers—that all allow fatter profits.
Revenue below manufacturing costs is a cancer for any business outside of “Catch-22”. A business needs to focus on profitable sources of revenue to survive.
[Click here for full story at: BUSINESSWEEK.COM]
1. Samsung Electronics' semiconductor unit has even sold chips below manufacturing costs.
2. It has been placing more emphasis on developing NAND flash chips, which can store information even when the power is switched off, and are widely used in handheld products such as music players, digital cameras, and portable media players, and provide an alternative profit driver when DRAM chip prices are falling. (More costly than conventional hard drives, flash drives are faster, more reliable, and consume less power).
3. On June 14 it opened a $3.5 billion state-of-the-art NAND plant in Austin, Tex., where it already has a memory chip factory.
4. It hopes that one eventual driver of demand will be notebook PCs, which will be equipped with NAND-based drives, called solid-state drives or SSDs. Although more costly than conventional hard drives, flash drives are faster, more reliable, and consume less power
5. It has built up a superior product mix - its memory chip business is the biggest in the world.
6. It has developed the capability of delivering custom-made memory devices for game consoles; handsets doubling as music players; and high-end servers—that all allow fatter profits.
Revenue below manufacturing costs is a cancer for any business outside of “Catch-22”. A business needs to focus on profitable sources of revenue to survive.
[Click here for full story at: BUSINESSWEEK.COM]
REVENUE STRATEGY - CINVEN
1. Cinven Ltd., manager of a 6.5 billion-euro ($8.7 billion) buyout fund, agreed to buy British United Provident Association Ltd.'s U.K. hospitals for 1.44 billion pounds ($2.85 billion) as the government sends more patients to private facilities to reduce waiting times.
2. It will finance the deal with 369 million pounds of cash from its latest buyout fund, and the rest with loans secured on BUPA's real estate assets. It may consider selling shares of the business on the stock exchange at a later date.
Revenue is in noticing and heeding customer diversions
[Click here for full story at: BLOOMBERG.COM]
2. It will finance the deal with 369 million pounds of cash from its latest buyout fund, and the rest with loans secured on BUPA's real estate assets. It may consider selling shares of the business on the stock exchange at a later date.
Revenue is in noticing and heeding customer diversions
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - APPLE
1. Apple Inc.’s new iPhone’s will run longer than those found in rival devices that deliver e-mail and Web access: a) Eight hours of talk time,
b) Six hours of Internet use,
c) Seven hours of video playback or
d) 24 hours of audio playback
2. It replaced the plastic top surface of the phone with optical- quality glass to make it clearer and more scratch-resistant.
3. It is offering two models: a 4-gigabyte version for $499 and an 8-gigabyte model for $599.
4. Both feature a 3.5-inch color display that's powered by a touch screen rather than buttons and a physical keyboard.
Product differentiation is the masterkey to revenue
[Click here for full story at: BLOOMBERG.COM]
b) Six hours of Internet use,
c) Seven hours of video playback or
d) 24 hours of audio playback
2. It replaced the plastic top surface of the phone with optical- quality glass to make it clearer and more scratch-resistant.
3. It is offering two models: a 4-gigabyte version for $499 and an 8-gigabyte model for $599.
4. Both feature a 3.5-inch color display that's powered by a touch screen rather than buttons and a physical keyboard.
Product differentiation is the masterkey to revenue
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - MICROSOFT
1. Microsoft Corp., the world's largest software maker and First Consulting Group Inc., health-care consulting firm, will sell software, called FirstPoint, that helps pharmaceutical companies track and organize documents for creating drugs.
2. Microsoft has made two acquisitions in the health-care software field in the last year and now has about 500 workers in the area, up from five in 2002.
3. FirstPoint will be much easier to use and help drugmakers slash development time by 30 percent
Revenue is in finding and fulfilling a need
[Click here for full story at: BLOOMBERG.COM]
2. Microsoft has made two acquisitions in the health-care software field in the last year and now has about 500 workers in the area, up from five in 2002.
3. FirstPoint will be much easier to use and help drugmakers slash development time by 30 percent
Revenue is in finding and fulfilling a need
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - BANK OF AMERICA
1. Bank of America Corp., the second- biggest U.S. bank, will retain the U.S. Trust name for its private wealth-management business when it buys the business from Charles Schwab Corp for $3.3 billion.
2. It will add about $100 billion in assets under management, bringing the total to about $270 billion. 3. The new unit will serve clients with more than $3 million in assets to invest.
You get more revenue from:
1. Using a business name that has ‘a name’
2. More active assets
3. Wealthier customers
[Click here for full story at: BLOOMBERG.COM]
2. It will add about $100 billion in assets under management, bringing the total to about $270 billion. 3. The new unit will serve clients with more than $3 million in assets to invest.
You get more revenue from:
1. Using a business name that has ‘a name’
2. More active assets
3. Wealthier customers
[Click here for full story at: BLOOMBERG.COM]
Friday, June 15, 2007
REVENUE STRATEGY - TELECOM
1. Over the past year the telecom industry has roared back to life from the doldrums because of a steady rise in appetite for broadband Internet connections, which enable easy consumption of watch-my-cat video clips, iPod music files, and such Web-inspired services as free Internet phoning.
2. About half of the Internet's transmission capacity was going unused in 2002. Today that pipeline has almost doubled in size, and yet the unused portion is down to about 30%.
3. Telecom investment plays a vital role in stimulating economic growth and productivity - more so than money spent on roads, electricity, or even education.
4. Communication assets generate massive benefits by slashing the cost of doing business across the economy.
5. A high-speed data network suddenly makes it easier and cheaper for all kinds of workers to place orders, service customers, and drum up new business.
So:
1. Capital spending is on the rise as companies invest to build high-speed networks.
2. Qwest Communications International Inc is planning expansions of its backbone in order to support growth in Internet applications and video
3. The Bell phone companies, meanwhile, have consolidated and are furiously developing services they hope will let them capitalize on the billions they're investing to build speedy new networks.
4. Web companies such as Google are making a push to introduce more competition into the wireless industry and loosen the Bells' control over the Internet's distribution.
5. Apple Inc.'s iPhone may herald a new round of disruption for the big telcos because it surfs the Web, takes pictures, plays music and makes phone calls. Customers could start demanding a full range of Internet service on their phones and new freedom in their service plans. That could create ever more demand for servers and routers, video services, and upgraded wireless networks.
6. Level 3 Communications refinanced its massive debt at lower rates and pulled off 10 acquisitions worth more than $4 billion. More than half of its network traffic today is from Web video.
7. Verizon will soon offer services that allow consumers to personalize and share photos, videos, and other media among their cell phones, PCs, and TVs. In July the company will launch an interactive media guide for Verizon's FiOSTV service; by clicking on it, couch potatoes can access all of the photos, music, and videos they have stored on a PC. Later it will allow TV customers to create their own personalized video channels.
8. In 2004 critics laughed when Cisco rolled out an audacious new router, the CRS-1, capable of transmitting the entire contents of the Library of Congress in a few seconds. This year, thanks to the video bandwidth hogs, sales of the CRS-1 are expected to hit $1 billion, more than double the figure for 2006.
9. Mergers and acquisitions reflect the promise of revenues in telecom:
(a) In February 2004, Cingular Wireless agreed to buy AT&T Wireless Services for about $41 billion.
(b) In December, Sprint announced a deal to buy Nextel Communications for $35 billion.
(c) A month later, SBC Communications said it would buy AT&T for $16 billion.
(d) A month after that, Verizon struck a deal to acquire MCI, the former WorldCom, for $8.4 billion.
(e) On June 5 2007 Silver Lake Partners and the Texas Pacific Group agreed to pay $8.2 billion for networking gear-maker Avaya.
Luck, fate, destiny – they all can impact revenue after hard work has played its part
[Click here for full story at: BUSINESSWEEK.COM]
2. About half of the Internet's transmission capacity was going unused in 2002. Today that pipeline has almost doubled in size, and yet the unused portion is down to about 30%.
3. Telecom investment plays a vital role in stimulating economic growth and productivity - more so than money spent on roads, electricity, or even education.
4. Communication assets generate massive benefits by slashing the cost of doing business across the economy.
5. A high-speed data network suddenly makes it easier and cheaper for all kinds of workers to place orders, service customers, and drum up new business.
So:
1. Capital spending is on the rise as companies invest to build high-speed networks.
2. Qwest Communications International Inc is planning expansions of its backbone in order to support growth in Internet applications and video
3. The Bell phone companies, meanwhile, have consolidated and are furiously developing services they hope will let them capitalize on the billions they're investing to build speedy new networks.
4. Web companies such as Google are making a push to introduce more competition into the wireless industry and loosen the Bells' control over the Internet's distribution.
5. Apple Inc.'s iPhone may herald a new round of disruption for the big telcos because it surfs the Web, takes pictures, plays music and makes phone calls. Customers could start demanding a full range of Internet service on their phones and new freedom in their service plans. That could create ever more demand for servers and routers, video services, and upgraded wireless networks.
6. Level 3 Communications refinanced its massive debt at lower rates and pulled off 10 acquisitions worth more than $4 billion. More than half of its network traffic today is from Web video.
7. Verizon will soon offer services that allow consumers to personalize and share photos, videos, and other media among their cell phones, PCs, and TVs. In July the company will launch an interactive media guide for Verizon's FiOSTV service; by clicking on it, couch potatoes can access all of the photos, music, and videos they have stored on a PC. Later it will allow TV customers to create their own personalized video channels.
8. In 2004 critics laughed when Cisco rolled out an audacious new router, the CRS-1, capable of transmitting the entire contents of the Library of Congress in a few seconds. This year, thanks to the video bandwidth hogs, sales of the CRS-1 are expected to hit $1 billion, more than double the figure for 2006.
9. Mergers and acquisitions reflect the promise of revenues in telecom:
(a) In February 2004, Cingular Wireless agreed to buy AT&T Wireless Services for about $41 billion.
(b) In December, Sprint announced a deal to buy Nextel Communications for $35 billion.
(c) A month later, SBC Communications said it would buy AT&T for $16 billion.
(d) A month after that, Verizon struck a deal to acquire MCI, the former WorldCom, for $8.4 billion.
(e) On June 5 2007 Silver Lake Partners and the Texas Pacific Group agreed to pay $8.2 billion for networking gear-maker Avaya.
Luck, fate, destiny – they all can impact revenue after hard work has played its part
[Click here for full story at: BUSINESSWEEK.COM]
REVENUE STRATEGY - HOUSEHOLD PRODUCTS
Fraudulent products hurt sales and reputations of companies such as Nestle SA, Procter & Gamble Co. and Unilever and may pose health risks.
The boom is being driven by:
1. The Internet, which makes it easier to find customers
2. The development of cheap, high-quality printing equipment that allows criminals to mass-produce packaging
3. Increasing trade with Asia, where trademark rules are less rigorously enforced.
4. A lack of consumer awareness, making copying household goods less risky than targeting luxury handbags and watches.
So:
1. Unilever's stops the goods before they enter Europe or North America, where it's trickier to track them down. It registers brands locally and depends on salespeople and distributors in Asia to gather evidence of fakes.
2. PepsiCo Inc. of Purchase, New York, works with national authorities to protect its brands.
3. Red Bull GmbH, maker of the world's most popular energy drink, has a global network of samplers who seek out rip-offs.
Counterfeits hit revenues directly first and then indirectly via reputation.
Counter-counterfeiting = revenue squared ?
[Click here for full story at: BLOOMBERG.COM]
The boom is being driven by:
1. The Internet, which makes it easier to find customers
2. The development of cheap, high-quality printing equipment that allows criminals to mass-produce packaging
3. Increasing trade with Asia, where trademark rules are less rigorously enforced.
4. A lack of consumer awareness, making copying household goods less risky than targeting luxury handbags and watches.
So:
1. Unilever's stops the goods before they enter Europe or North America, where it's trickier to track them down. It registers brands locally and depends on salespeople and distributors in Asia to gather evidence of fakes.
2. PepsiCo Inc. of Purchase, New York, works with national authorities to protect its brands.
3. Red Bull GmbH, maker of the world's most popular energy drink, has a global network of samplers who seek out rip-offs.
Counterfeits hit revenues directly first and then indirectly via reputation.
Counter-counterfeiting = revenue squared ?
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - SPICEJET
1. SpiceJet Ltd., India's second-biggest low-fare carrier, is spending as much as $400 million to buy 10 new Boeing Co. planes.
2. It aims to carry six million passengers in the current financial year
The calculus of over-investment can prevent inadvertant self-destruction
[Click here for full story at: BLOOMBERG.COM]
2. It aims to carry six million passengers in the current financial year
The calculus of over-investment can prevent inadvertant self-destruction
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - APPLE
1. Apple launched Safari, a new web browser for Windows. It was previously only available for Macintosh computers.
2. It was twice as fast as Internet Explorer.
3. It is hoping to replicate the success of iTunes, which has proved enormously popular on both Macs and Windows machines.
4. It issued an update to the program, to fix some of the potential security flaws.
Mega-Revenue trick: Create a killer product and hitch it to a star.
[Click here for full story at: BBCNEWS.COM]
2. It was twice as fast as Internet Explorer.
3. It is hoping to replicate the success of iTunes, which has proved enormously popular on both Macs and Windows machines.
4. It issued an update to the program, to fix some of the potential security flaws.
Mega-Revenue trick: Create a killer product and hitch it to a star.
[Click here for full story at: BBCNEWS.COM]
REVENUE STRATEGY - COLGATE-PALMOLIVE
1. Colgate-Palmolive Co., the world's biggest toothpaste maker, is collecting fake toothpaste from stores in four U.S. states and contacting all the company's accounts in the country to make sure they have no counterfeit products.
2. It will spare no effort to help consumers avoid counterfeits
3. It will pull fakes from store shelves
4. It is increasing the number of workers manning a consumer hotline and extending the hours during which calls can be made.
Fighting counterfeits brings revenue
[Click here for full story at: BLOOMBERG.COM]
2. It will spare no effort to help consumers avoid counterfeits
3. It will pull fakes from store shelves
4. It is increasing the number of workers manning a consumer hotline and extending the hours during which calls can be made.
Fighting counterfeits brings revenue
[Click here for full story at: BLOOMBERG.COM]
Thursday, June 14, 2007
EXPENDITURE STRATEGY - HON HAI PRECISION
Hon Hai Precision Industry Co., the world's biggest contract-manufacturer of electronics, is cutting costs by building production sites in Vietnam, India, Brazil and China.
Look (at logistics too) before you leap (into cheap production sites)
[Click here for full story at: BLOOMBERG.COM]
Look (at logistics too) before you leap (into cheap production sites)
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - SIGMA PHARMACEUTICALS
Sigma Pharmaceuticals Ltd., Australia's biggest contract maker of drugs, may make a rival offer for the vitamin-making unit (which makes Cenovis and Nature's Own brands) of Symbion Health Ltd., Australia 's largest health-care company.
Acquisitions that avoid cannibalization of own products allow greater revenue.
[Click here for full story at: BLOOMBERG.COM]
Acquisitions that avoid cannibalization of own products allow greater revenue.
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - JSM INDOCHINA
1. JSM Indochina Ltd. plans to raise as much as $690 million in an initial public offering to invest in real estate projects in Vietnam and Cambodia as well as other countries in Indochina.
2. It plans to invest at least 50 percent of its gross asset value in Vietnamese-based projects with the focus on Ho Chi Minh City, Hanoi and other cities.
More investment = more revenue.
More over-investment = more expenditure
[Click here for full story at: BLOOMBERG.COM]
2. It plans to invest at least 50 percent of its gross asset value in Vietnamese-based projects with the focus on Ho Chi Minh City, Hanoi and other cities.
More investment = more revenue.
More over-investment = more expenditure
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - BOEING
Boeing Co., the world's second- largest commercial airplane maker, had introduced the new fuel-efficient 787 aircraft. This will add to the number of new planes purchased to retire older ones. (Of aircraft being added over the next two-decade period, 18,200 will be used for growth and 10,400 to replace aging planes.)
Frugal products = generally more revenue
[Click here for full story at: BLOOMBERG.COM]
Frugal products = generally more revenue
[Click here for full story at: BLOOMBERG.COM]
EXPENDITURE STRATEGY - NISSAN MOTOR
1. Nissan Motor Co., Japan's third- largest automaker, buys minicars from other manufacturers including Suzuki Motor Corp. instead of building them itself.
2. It will outsource the manufacture of Clipper Rio to Mitsubishi Motors Corp.
Outsourcing manufacture = (i) outsourcing some costs of bad times and (ii) outsourcing some revenues of good times
[Click here for full story at: BLOOMBERG.COM]
2. It will outsource the manufacture of Clipper Rio to Mitsubishi Motors Corp.
Outsourcing manufacture = (i) outsourcing some costs of bad times and (ii) outsourcing some revenues of good times
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - NISSAN MOTOR
Nissan Motor Co., Japan's third- largest automaker, introduced
a) the Atlas F24 light-duty truck and
b) Clipper Rio minicar
to stem a decline and revive domestic sales.
New product = new scope and new hope for revenue
[Click here for full story at: BLOOMBERG.COM]
a) the Atlas F24 light-duty truck and
b) Clipper Rio minicar
to stem a decline and revive domestic sales.
New product = new scope and new hope for revenue
[Click here for full story at: BLOOMBERG.COM]
EXPENDITURE STRATEGY - NEWS CORP
News Corp. plans to sell nine Fox-affiliated television stations in U.S. cities including Denver and Memphis, Tennessee as:
1. Industry revenue growth slows.
2. It proceeds with a $5 billion bid for Dow Jones & Co., owner of the Wall Street Journal.
Soccer rule: When in doubt kick it out
Adapted business rule: When in doubt about revenue kick its related expenses out
[Click here for full story at: BLOOMBERG.COM]
1. Industry revenue growth slows.
2. It proceeds with a $5 billion bid for Dow Jones & Co., owner of the Wall Street Journal.
Soccer rule: When in doubt kick it out
Adapted business rule: When in doubt about revenue kick its related expenses out
[Click here for full story at: BLOOMBERG.COM]
EXPENDITURE STRATEGY - CADBURY SCHWEPPES
1. Cadbury Schweppes Plc, the world's largest confectioner, will sell or spin off its U.S. drinks unit to focus on Dairy Milk chocolate and Trident gum.
2. It will split its Europe, Middle East and Africa unit and move its head office out of London to improve profitability.
3. It agreed to sell its Australian jams and jellies division to H.J. Heinz Co. as part of a plan to raise 250 million pounds from disposals of smaller assets.
Sticking to the knitting can terminate sub-optimal expenses
[Click here for full story at: BLOOMBERG.COM]
2. It will split its Europe, Middle East and Africa unit and move its head office out of London to improve profitability.
3. It agreed to sell its Australian jams and jellies division to H.J. Heinz Co. as part of a plan to raise 250 million pounds from disposals of smaller assets.
Sticking to the knitting can terminate sub-optimal expenses
[Click here for full story at: BLOOMBERG.COM]
EXPENDITURE STRATEGY - EADS
1. European Aeronautic Defence and Space Company (EADS) is unable to arrive at consensus because of internationally polarized management and shareholding.
2. Instead, the shareholders were allowed to decide themselves on what should happen with the meagre earnings. By a majority vote it was decided they should be distributed.
Should the mob ever rule? It is such an expensive proposition
[EADS leadership contingents are now mutually paralyzing each other to the detriment of the company:
1. It was unable to increase capital stock in order to cover the rising financial costs associated with the new A350 long-haul airliner.
2. It was unable to convince shareholders to renounce their dividend payments due to the delayed production of the A380 superjumbo.
3. It was unable to agree to establish a convertible loan
4. It gave former Airbus CEO Noël Foergard $11.3 million when he resigned about a year ago - despite the billion-euro debacle over the delays in the production of the superjumbo A380.
5. Its two main shareholders DaimlerChrysler and Lagardère want to withdraw from the aviation industry in the medium term and are therefore not particularly enthusiastic about investing more money in the company.]
[Click here for full story at: BUSINESSWEEK.COM]
2. Instead, the shareholders were allowed to decide themselves on what should happen with the meagre earnings. By a majority vote it was decided they should be distributed.
Should the mob ever rule? It is such an expensive proposition
[EADS leadership contingents are now mutually paralyzing each other to the detriment of the company:
1. It was unable to increase capital stock in order to cover the rising financial costs associated with the new A350 long-haul airliner.
2. It was unable to convince shareholders to renounce their dividend payments due to the delayed production of the A380 superjumbo.
3. It was unable to agree to establish a convertible loan
4. It gave former Airbus CEO Noël Foergard $11.3 million when he resigned about a year ago - despite the billion-euro debacle over the delays in the production of the superjumbo A380.
5. Its two main shareholders DaimlerChrysler and Lagardère want to withdraw from the aviation industry in the medium term and are therefore not particularly enthusiastic about investing more money in the company.]
[Click here for full story at: BUSINESSWEEK.COM]
Wednesday, June 13, 2007
REVENUE STRATEGY - RELIANCE INDUSTRIES
Reliance Industries Ltd., India's biggest company has committed to spend $25 billion on drilling, refining, chemicals and supermarkets.
But:
1. It is facing delays in delivery of drilling rigs to develop the gas field discovered in the Krishna Godavari basin.
2. It is forced to curb exploration because of a shortage of rigs and contractors,
So:
1. It may bid and work together for the first time with BP Plc, Exxon Mobil Corp. and Chevron Corp. for drilling rights in India:
a) To share rising exploration costs, resources, technology, knowledge, experience and risks and
b) Gain the expertise, equipment and experience gained by Exxon and BP for more than a decade in deep-sea areas such as the Gulf of Mexico.
2. It is banking on rigs from Transocean Inc., the world's largest offshore oil and gas driller, to drill in water depths of 7,000 to 10,000 feet and ensure India's biggest gas project starts on schedule.
3. It is directing rigs to drill wells used in developing the field, at the expense of exploration in new areas
4. It has more than 100 employees sitting with various contractors across the world to ensure that supply schedules are met.
5. It is in talks with GAIL (India) Ltd. and Bharat Petroleum Corp. to use their pipelines to sell part of the output. (GAIL's pipelines, which have a capacity to supply 140 million cubic meters a day of gas, are run at about 55 percent of capacity because of a lack of supply).
Alliances can remove obstacles to revenue.
[Click here for full story at: BLOOMBERG.COM]
But:
1. It is facing delays in delivery of drilling rigs to develop the gas field discovered in the Krishna Godavari basin.
2. It is forced to curb exploration because of a shortage of rigs and contractors,
So:
1. It may bid and work together for the first time with BP Plc, Exxon Mobil Corp. and Chevron Corp. for drilling rights in India:
a) To share rising exploration costs, resources, technology, knowledge, experience and risks and
b) Gain the expertise, equipment and experience gained by Exxon and BP for more than a decade in deep-sea areas such as the Gulf of Mexico.
2. It is banking on rigs from Transocean Inc., the world's largest offshore oil and gas driller, to drill in water depths of 7,000 to 10,000 feet and ensure India's biggest gas project starts on schedule.
3. It is directing rigs to drill wells used in developing the field, at the expense of exploration in new areas
4. It has more than 100 employees sitting with various contractors across the world to ensure that supply schedules are met.
5. It is in talks with GAIL (India) Ltd. and Bharat Petroleum Corp. to use their pipelines to sell part of the output. (GAIL's pipelines, which have a capacity to supply 140 million cubic meters a day of gas, are run at about 55 percent of capacity because of a lack of supply).
Alliances can remove obstacles to revenue.
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - LEHMAN BROTHERS
1. Lehman Brothers Holdings Inc. was on the brink of failure in 1998 but pushed ahead with a plan to diversify beyond its U.S. bond-market base.
2. It has become the largest broker of shares on the London Stock Exchange and third-biggest on U.S. bourses.
3. Its team of U.S. equity-research analysts has ranked first in Institutional Investor magazine's annual survey for four years.
4. In 2003, it became a bigger player in money management with the $3.2 billion purchase of Neuberger Berman Inc.
5. It boosted profit faster than Morgan Stanley or Merrill by resisting pressure to slash costs during industry downturns. While Morgan Stanley fired more than 10,000 people following the dot-com bust of 2001, Lehman hired more than 3,000.
6. It relied on hiring to catch up on overseas business.
a) In the past four years, it lured Christian Meissner, Goldman's co-head of European equity capital markets; Morgan Stanley energy banker William Vereker; Francesco Mengozzi, the ex-CEO of Italian airline Alitalia SpA; and Edmond Alphandery, a former French economy minister.
b) In Asia it hired Pankaj Vaish from Citigroup Inc. to run Indian equities and fixed income; economist Kenichi Kawasaki from the Japanese government; and Goldman's John Adair in Japan.
Diversification and hiring and guts are ingredients of revenue.
[Click here for full story at: BLOOMBERG.COM]
2. It has become the largest broker of shares on the London Stock Exchange and third-biggest on U.S. bourses.
3. Its team of U.S. equity-research analysts has ranked first in Institutional Investor magazine's annual survey for four years.
4. In 2003, it became a bigger player in money management with the $3.2 billion purchase of Neuberger Berman Inc.
5. It boosted profit faster than Morgan Stanley or Merrill by resisting pressure to slash costs during industry downturns. While Morgan Stanley fired more than 10,000 people following the dot-com bust of 2001, Lehman hired more than 3,000.
6. It relied on hiring to catch up on overseas business.
a) In the past four years, it lured Christian Meissner, Goldman's co-head of European equity capital markets; Morgan Stanley energy banker William Vereker; Francesco Mengozzi, the ex-CEO of Italian airline Alitalia SpA; and Edmond Alphandery, a former French economy minister.
b) In Asia it hired Pankaj Vaish from Citigroup Inc. to run Indian equities and fixed income; economist Kenichi Kawasaki from the Japanese government; and Goldman's John Adair in Japan.
Diversification and hiring and guts are ingredients of revenue.
[Click here for full story at: BLOOMBERG.COM]
EXPENDITURE STRATEGY - LEHMAN BROTHERS
Lehman Brothers Holdings Inc. has developed the culture and the trust with employees, which lets it reduce pay when times are tough so it can avoid reducing payroll.
Trust can turn lose-lose situations into win-win
[Click here for full story at: BLOOMBERG.COM]
Trust can turn lose-lose situations into win-win
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - INDITEX
1. Inditex SA, Europe's largest clothing retailer, expanded its Zara, Berksha and Massimo Dutti chains in Spain, France and China. It has more than tripled in size in six years to 3,200 stores, surpassing Gap Inc. and Hennes & Mauritz AB, and is opening at least one store each day. It is targeting 4,000 outlets by 2009.
2. It has spent about 4 billion euros over six years, and expects to add as many as 520 shops in the year to January.
3. It aims to boost sales at stores open a year or more by 4 percent to 5 percent over the medium term.
4. It can get new garments from the design board to store shelves within two weeks because it buys about half its apparel in Spain or nearby countries such as Morocco.
5. Its store managers use handheld computers to select the garments they want from collections, and cash registers relay information on sales to Inditex's headquarters.
6. It orders 50 percent to 60 percent of the apparel in each new collection before the clothes go on sale, compared with 80 percent to 100 percent for competitors, giving it more flexibility if consumers' tastes change.
Reputation can convert store additions into profitable revenue additions
[Click here for full story at: BLOOMBERG.COM]
2. It has spent about 4 billion euros over six years, and expects to add as many as 520 shops in the year to January.
3. It aims to boost sales at stores open a year or more by 4 percent to 5 percent over the medium term.
4. It can get new garments from the design board to store shelves within two weeks because it buys about half its apparel in Spain or nearby countries such as Morocco.
5. Its store managers use handheld computers to select the garments they want from collections, and cash registers relay information on sales to Inditex's headquarters.
6. It orders 50 percent to 60 percent of the apparel in each new collection before the clothes go on sale, compared with 80 percent to 100 percent for competitors, giving it more flexibility if consumers' tastes change.
Reputation can convert store additions into profitable revenue additions
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - ORANGE
Orange, the UK phone firm, breached advertising rules by saying that a broadband deal offered "unlimited" calls and downloads.
It broke rules by failing to mention "fair usage policies" that affected both phone calls and downloads. It said the details had been omitted from the small print in the advert because of a production error.
[The Advertising Standards Authority found calls were limited to a "fair usage" of 1,000 minutes a month - which was not stated in the magazine advert, so the ad was misleading.
Downloads were also subject to a limit, depending on network availability.]
Revenue can from reputation. Reputation can die with mistakes.
[Click here for full story at: BBCNEWS.COM]
It broke rules by failing to mention "fair usage policies" that affected both phone calls and downloads. It said the details had been omitted from the small print in the advert because of a production error.
[The Advertising Standards Authority found calls were limited to a "fair usage" of 1,000 minutes a month - which was not stated in the magazine advert, so the ad was misleading.
Downloads were also subject to a limit, depending on network availability.]
Revenue can from reputation. Reputation can die with mistakes.
[Click here for full story at: BBCNEWS.COM]
REVENUE STRATEGY - ASCENDAS
1. Ascendas Pte, which manages Singapore's biggest industrial property trust, wants to double the assets it manages to more than S$10 billion by 2010 as it expands in Asia.
2. It will set up a S$500 million ($324 million) fund to invest in Indian real estate projects to tap the rapid growth of the Indian real estate sector, riding on India's strong economic performance.
3. The fund is expected to double to S$1 billion.
4. It will invest in integrated developments in India, where it will build business space in the projects including two information technology parks in Pune and Nagpur and other developments for residential, commercial and industrial use.
More investment in faster growing economy = more revenue faster
[Click here for full story at: BLOOMBERG.COM]
2. It will set up a S$500 million ($324 million) fund to invest in Indian real estate projects to tap the rapid growth of the Indian real estate sector, riding on India's strong economic performance.
3. The fund is expected to double to S$1 billion.
4. It will invest in integrated developments in India, where it will build business space in the projects including two information technology parks in Pune and Nagpur and other developments for residential, commercial and industrial use.
More investment in faster growing economy = more revenue faster
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - SANTANDER CENTRAL HISPANO
1. Santander Central Hispano SA, Spain's biggest bank, may raise 4 billion euros ($5.3 billion) selling real estate assets including the bank's headquarters to fund its banking business, including the ABN Amro Holding acquisition (with Royal Bank of Scotland Group Plc and Fortis against Barclays Plc).
2. It hopes to make a 1.4 billion-euro capital gain selling 44 buildings in Spain, including its new headquarters at Boadilla del Monte outside Madrid.
3. It will lease back the properties that are to be put on sale and will have the option to buy them back in the future.
4. It will go ahead with the sale even if the ABN acquisition doesn't succeed.
No risk, no revenue gain
[Click here for full story at: BLOOMBERG.COM]
2. It hopes to make a 1.4 billion-euro capital gain selling 44 buildings in Spain, including its new headquarters at Boadilla del Monte outside Madrid.
3. It will lease back the properties that are to be put on sale and will have the option to buy them back in the future.
4. It will go ahead with the sale even if the ABN acquisition doesn't succeed.
No risk, no revenue gain
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - ELECTRICITE DE FRANCE
1. The 1997 Kyoto Protocol, signed by more than 80 nations and the European Union, requires EU members and other industrialized countries to reduce greenhouse-gas emissions blamed for global warming by an average of 5 percent below 1990 levels in the five years through 2012.
2. The Kyoto protocol allows companies in industrialized countries to buy carbon credits from developing nations in order to comply with requirements
So:
1. Electricite de France SA, Europe's biggest power producer, bought carbon emission credits from China Guangdong Nuclear Power Holding Co. to help the French utility meet requirements to cut output of greenhouse gases.
2. The agreement covers 3.6 million metric tons of emissions credits generated by wind-power projects, Guangdong Nuclear, China's second-largest nuclear power producer.
A business with conscience = business with reputation.
A business with reputation = business with revenue.
But doesn’t carbon trading subvert its own objective?
[Click here for full story at: BLOOMBERG.COM]
2. The Kyoto protocol allows companies in industrialized countries to buy carbon credits from developing nations in order to comply with requirements
So:
1. Electricite de France SA, Europe's biggest power producer, bought carbon emission credits from China Guangdong Nuclear Power Holding Co. to help the French utility meet requirements to cut output of greenhouse gases.
2. The agreement covers 3.6 million metric tons of emissions credits generated by wind-power projects, Guangdong Nuclear, China's second-largest nuclear power producer.
A business with conscience = business with reputation.
A business with reputation = business with revenue.
But doesn’t carbon trading subvert its own objective?
[Click here for full story at: BLOOMBERG.COM]
Tuesday, June 12, 2007
REVENUE STRATEGY - APPLE
1. Apple relies increasingly on software to broaden the market for its products. Software enables it to move into new markets and take a leadership position versus entrenched incumbents that often seem to treat software as an afterthought.
2. It announced new versions of its free Safari Web browser for the ubiquitous Windows operating system giving PC users a no-risk way to sample Apple software, and possibly switch to a Mac computer or buy an iPhone.
3. It is trying to expand its ecosystem of developers to increase its 4.9% share of U.S. personal computer shipments, and push into new markets including mobile phones and set-top boxes. It offered Safari's underlying Web technologies to outside software developers so they could write programs for Apple products, including the iPhone. (Promoting Safari as the way for programmers to develop for the iPhone, and for Mac and Windows users to explore the Internet, could help Apple compete in a computer industry in which software is increasingly distributed online). Apple's approach could make it simpler for Salesforce.com to extend lead management software for sales reps for the iPhone compared with other mobile devices.
4. It demonstrated Safari running twice as fast as Microsoft's browser on common tasks - the most innovative browser and the fastest browser for Windows.
5. Its next version of Mac OS X, code-named Leopard, will include Apple software called Boot Camp that lets users switch from a Mac to a Windows environment, without a performance penalty. The operating system is scheduled to be available in October.
6. It will not provide unfettered access to the iPhone's operating system to avoid compromising its software quality and security.
There can be revenue from piggy-backing on complementary products.
[Click here for full story at: BUSINESSWEEK.COM]
2. It announced new versions of its free Safari Web browser for the ubiquitous Windows operating system giving PC users a no-risk way to sample Apple software, and possibly switch to a Mac computer or buy an iPhone.
3. It is trying to expand its ecosystem of developers to increase its 4.9% share of U.S. personal computer shipments, and push into new markets including mobile phones and set-top boxes. It offered Safari's underlying Web technologies to outside software developers so they could write programs for Apple products, including the iPhone. (Promoting Safari as the way for programmers to develop for the iPhone, and for Mac and Windows users to explore the Internet, could help Apple compete in a computer industry in which software is increasingly distributed online). Apple's approach could make it simpler for Salesforce.com to extend lead management software for sales reps for the iPhone compared with other mobile devices.
4. It demonstrated Safari running twice as fast as Microsoft's browser on common tasks - the most innovative browser and the fastest browser for Windows.
5. Its next version of Mac OS X, code-named Leopard, will include Apple software called Boot Camp that lets users switch from a Mac to a Windows environment, without a performance penalty. The operating system is scheduled to be available in October.
6. It will not provide unfettered access to the iPhone's operating system to avoid compromising its software quality and security.
There can be revenue from piggy-backing on complementary products.
[Click here for full story at: BUSINESSWEEK.COM]
EXPENDITURE STRATEGY - APPLE
Apple applies its software research-and-development spending across Macs, iPhones, and Apple TV products, so its earnings will likely outgrow its revenues.
Expenses are relatively reduced when shared between products, divisions or companies in a group
[Click here for full story at: BUSINESSWEEK.COM]
Expenses are relatively reduced when shared between products, divisions or companies in a group
[Click here for full story at: BUSINESSWEEK.COM]
EXPENDITURE STRATEGY - MATSUSHITA ELECTRIC
Matsushita Electric Industrial Co. may sell its 52.4 percent stake in Victor Co. of Japan Ltd., maker of the JVC brand of electronics and creator of the world's first home video recorder with the VHS format in 1976
Because:
1. Victor forecasts a fourth straight year of losses.
2. Victor had about $1 billion in debt as of March 31 (Victor may issue 20 billion yen ($164 million) of new stock to repay debt)
Matsushita may not sell to any party keen to sell off Victor’s money-losing units quickly
Expenses that do not generate a benefit do not need the benefit of any doubt.
[Click here for full story at: BLOOMBERG.COM]
Because:
1. Victor forecasts a fourth straight year of losses.
2. Victor had about $1 billion in debt as of March 31 (Victor may issue 20 billion yen ($164 million) of new stock to repay debt)
Matsushita may not sell to any party keen to sell off Victor’s money-losing units quickly
Expenses that do not generate a benefit do not need the benefit of any doubt.
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - VIRGIN CHARTER
1. Virgin Group is launching an online booking site for charter aircraft to capitalize on the booming, $10 billion-a-year charter aircraft industry acting as middlemen for travelers looking to charter a business trip or high-end vacation.
2. Virgin Charter hopes to create what's essentially an eBay for private jets. Customers will input their desired trips and charter operators will bid for their business. The customers will then choose which operator they want. Virgin Charter will get an unidentified cut of each sale.
3. It is adding a bit of social networking to the site. Charter customers and the aircraft owners will both be able to post comments about each other on the site, so travelers will know whether the operator was late and the plane owners will know whether the customer smoked in a nonsmoking plane.
4. It is encouraging plane owners who list on the site to get their planes certified by third-party for safety and quality.
5. It hopes to reduce costs by establishing itself as a clearinghouse for return trips without passengers that chartered planes often make to their home airports.
Finding a need and fulfilling = revenue.
[Click here for full story at: BUSINESSWEEK.COM]
2. Virgin Charter hopes to create what's essentially an eBay for private jets. Customers will input their desired trips and charter operators will bid for their business. The customers will then choose which operator they want. Virgin Charter will get an unidentified cut of each sale.
3. It is adding a bit of social networking to the site. Charter customers and the aircraft owners will both be able to post comments about each other on the site, so travelers will know whether the operator was late and the plane owners will know whether the customer smoked in a nonsmoking plane.
4. It is encouraging plane owners who list on the site to get their planes certified by third-party for safety and quality.
5. It hopes to reduce costs by establishing itself as a clearinghouse for return trips without passengers that chartered planes often make to their home airports.
Finding a need and fulfilling = revenue.
[Click here for full story at: BUSINESSWEEK.COM]
REVENUE STRATEGY - SONY
Sony Corp., the world's second- largest consumer electronics maker, may ship as many as 600,000 Blu-ray DVD players in the U.S. this year, from less than 100,000 units in 2006 as it expects movies exclusively available to the device will lure buyers.
Its Blu-ray fights with Toshiba Corp.'s HD DVD in high-definition television.
Successful Trend Guessing = Revenue
[Click here for full story at: BLOOMBERG.COM]
Its Blu-ray fights with Toshiba Corp.'s HD DVD in high-definition television.
Successful Trend Guessing = Revenue
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - PARSVNATH DEVELOPERS
1. Parsvnath Developers Ltd is developing 153 million square feet (14.21 million square meters) of townships, shopping malls (including malls at New Delhi's metro rail stations) and trade zones in 17 states across India.
2. It aims to invest as much as 50 billion rupees in the next two years to buy land and build homes.
But:
1. India wants to cool land prices that have as much as tripled in three years and driven the rupee to a nine-year high.
2. It has banned overseas borrowing by the real estate developers.
3. The Reserve Bank of India asked banks to curb loans to the real-estate sector, making it harder for developers to obtain cheap financing.
So:
1. Parsvnath plans to borrow 20 billion rupees in the next two years
2. It will meet the remaining 30 billion rupees from its own cash reserves and partnerships with investors
3. It plans to raise 5 billion rupees in the next three months
Where there is a will and also wealth there are many ways to revenue
2. It aims to invest as much as 50 billion rupees in the next two years to buy land and build homes.
But:
1. India wants to cool land prices that have as much as tripled in three years and driven the rupee to a nine-year high.
2. It has banned overseas borrowing by the real estate developers.
3. The Reserve Bank of India asked banks to curb loans to the real-estate sector, making it harder for developers to obtain cheap financing.
So:
1. Parsvnath plans to borrow 20 billion rupees in the next two years
2. It will meet the remaining 30 billion rupees from its own cash reserves and partnerships with investors
3. It plans to raise 5 billion rupees in the next three months
Where there is a will and also wealth there are many ways to revenue
Monday, June 11, 2007
REVENUE STRATEGY - DENSO CORP
1. Denso Corp., the world's largest listed auto-parts maker, plans to hire 2,000 engineers by 2010 as its biggest customer, Toyota Motor Corp., increases production of hybrid and other alternative-fuel vehicles. A hybrid vehicle combines a conventional gasoline engine with an electric motor. The motor powers the vehicle at low speeds, and the gasoline engine kicks in as the car gains speed. The motor's battery pack is charged by the gasoline engine and by power regenerated by the brakes.
2. The bulk of growth will be in Japan, where 1,100 new engineers will be hired. This year, Denso plans to hire 110 engineers worldwide.
3. The parts maker needs to increase hiring to sustain profit growth that has outpaced Toyota's over the past three years.
4. It is cooperating with Toyota in the development of different types of hybrid cars including gasoline- ethanol and diesel-bio fuel types
5. It will produce auto-related chips at a new plant in Hokkaido. It will need to build another facility to produce wafers in about five years
6. It will also expand production of diesel engine components to increase market share in Europe, where diesel-powered cars command half the market. It will produce diesel particulate filters in a joint venture with Robert Bosch GmbH in a factory in Eastern Europe.
7. Denso will also release an improved 2,000-bar diesel engine common rail system next year.
Following market trends leads to revenue
[Click here for full story at: BLOOMBERG.COM]
2. The bulk of growth will be in Japan, where 1,100 new engineers will be hired. This year, Denso plans to hire 110 engineers worldwide.
3. The parts maker needs to increase hiring to sustain profit growth that has outpaced Toyota's over the past three years.
4. It is cooperating with Toyota in the development of different types of hybrid cars including gasoline- ethanol and diesel-bio fuel types
5. It will produce auto-related chips at a new plant in Hokkaido. It will need to build another facility to produce wafers in about five years
6. It will also expand production of diesel engine components to increase market share in Europe, where diesel-powered cars command half the market. It will produce diesel particulate filters in a joint venture with Robert Bosch GmbH in a factory in Eastern Europe.
7. Denso will also release an improved 2,000-bar diesel engine common rail system next year.
Following market trends leads to revenue
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - APPLE
1. Apple Inc. may let developers write programs for the iPhone to broaden the appeal of the company's first mobile phone. Developers need Apple's permission to create iPhone programs. It has more than 750,000 developers, who have written more than 12,000 Mac OS X programs. The Mac operating system, called OS X, also powers the iPhone, the combination iPod music player and mobile phone that Apple will start selling June 29
2. Apple will sell two models of the phone, a 4-gigabyte version for $499 and an 8-gigabyte model for $599, with help from AT&T Inc., the largest U.S. mobile phone service. The iPhone has a touch-screen display instead of a physical keyboard and lets users surf the Web and access e-mail from services including Yahoo! Inc. and Google Inc.
3. The iPhone will compete with so-called smart phones such as Research In Motion Ltd.'s BlackBerry, which sells for as little as $200 with a two-year AT&T service contract.
4. It will also tout Leopard, the latest version of the software that runs its Mac computers at its global developers' conference in San Francisco.
5. It has accelerated sales of its computer in the past two years, after it delivered faster models with Intel Corp. chips and sleeker designs.
Good product + popular involvement = great revenue
[Click here for full story at: BLOOMBERG.COM]
2. Apple will sell two models of the phone, a 4-gigabyte version for $499 and an 8-gigabyte model for $599, with help from AT&T Inc., the largest U.S. mobile phone service. The iPhone has a touch-screen display instead of a physical keyboard and lets users surf the Web and access e-mail from services including Yahoo! Inc. and Google Inc.
3. The iPhone will compete with so-called smart phones such as Research In Motion Ltd.'s BlackBerry, which sells for as little as $200 with a two-year AT&T service contract.
4. It will also tout Leopard, the latest version of the software that runs its Mac computers at its global developers' conference in San Francisco.
5. It has accelerated sales of its computer in the past two years, after it delivered faster models with Intel Corp. chips and sleeker designs.
Good product + popular involvement = great revenue
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - J&J
How is J&J enhancing revenue of its consumer health division?
Acquisition
1. J&J acquired Pfizer’s consumer health unit last year for $16.6 billion and their shared mission is: to keep their storied brands up to date by constantly tweaking the ingredients, redesigning the packaging, and finding whole new uses for the contents. (Pfizer had won the right to pitch Listerine as much more than a breath freshener simply by running some inexpensive clinical trials.)
2. It gained a foothold in the skin-care market by buying pimple-potion purveyor Clean & Clear and RoC, a French maker of anti-wrinkle creams, followed by soapmakers Neutrogena and Aveeno.
3. It preserves the independence of operations it acquires.
Focus on new products and new uses for old products
4. It put together small teams of up to a dozen scientists and charged each with tackling a cosmetic challenge, like an acne team, a pigmentation team etc, which gather input from marketing and development folks and partner with small, forward-thinking companies.
5. Its new system is helping aging brands such as Neutrogena expand in unexpected directions including an at-home version of something called microdermabrasian - a skin-smoothing procedure that can cost up to $200 at health spas.
6. It produced 400 new products last year, and the acquisition of Pfizer pushed it to the top of 22 consumer categories.
7. It keeps investing technology and innovation into baby potions to perpetuate revenues.
8. Its Pfizer scientists have mastered a formula for generating revenue from minor breakthroughs, which don’t cost a fortune, like the melt-in-your-mouth film for Listerine PockectPaks, which has become a new drug delivery platform that may be expanded to other over-the-counter drugs.
9. It is putting its new Helioplex, a broader and longer-lasting sunscreen, into several products, including Neutrogena's sunscreens and anti-aging lotions.
10. It drives demand for products by adding new claims about them – like Listerine can prevent gingivitis
11. Its unit managers are constantly weighed against internally designed “composites” made up of competitors in each of J&J's three major industries, consumer, pharmaceuticals, and medical devices. The goal is to outpace the composite on a top- and bottom-line basis.
Marketing experiments
12. It built buzz for Rembrandt toothpaste as the whitener of choice for the hip and youthful, by hosting makeover parties, book readings, and concerts. Just before Valentine's Day, its Rembrandt team placed an ad on YouTube that featured a young couple kissing passionately for 30 seconds. It was so racy that the video site relegated it to its adult section prompting viewers to click on the ad 180,000 times.
13. In 2006, it opened a satellite office in New York staffed by designers who spend their days devising fresh ways to serve up decades-old products, from how they're packaged to how they're displayed on store shelves.
14. It sponsors more than 700 baby centers in China to teach Chinese parents the art of therapeutic touch
15. It expanded a consumer research center in India in 2004, and has just broken ground on a similar center in Shanghai to garner insights on how to tailor products to local markets
16. It is using Pfizer to plug some holes in its geographic reach, for example, in Mexico
Acquisitions + new products + new uses of old products + marketing buzz + an eye on the competition = REVENUE.
[Click here for full story at: BUSINESSWEEK.COM]
Acquisition
1. J&J acquired Pfizer’s consumer health unit last year for $16.6 billion and their shared mission is: to keep their storied brands up to date by constantly tweaking the ingredients, redesigning the packaging, and finding whole new uses for the contents. (Pfizer had won the right to pitch Listerine as much more than a breath freshener simply by running some inexpensive clinical trials.)
2. It gained a foothold in the skin-care market by buying pimple-potion purveyor Clean & Clear and RoC, a French maker of anti-wrinkle creams, followed by soapmakers Neutrogena and Aveeno.
3. It preserves the independence of operations it acquires.
Focus on new products and new uses for old products
4. It put together small teams of up to a dozen scientists and charged each with tackling a cosmetic challenge, like an acne team, a pigmentation team etc, which gather input from marketing and development folks and partner with small, forward-thinking companies.
5. Its new system is helping aging brands such as Neutrogena expand in unexpected directions including an at-home version of something called microdermabrasian - a skin-smoothing procedure that can cost up to $200 at health spas.
6. It produced 400 new products last year, and the acquisition of Pfizer pushed it to the top of 22 consumer categories.
7. It keeps investing technology and innovation into baby potions to perpetuate revenues.
8. Its Pfizer scientists have mastered a formula for generating revenue from minor breakthroughs, which don’t cost a fortune, like the melt-in-your-mouth film for Listerine PockectPaks, which has become a new drug delivery platform that may be expanded to other over-the-counter drugs.
9. It is putting its new Helioplex, a broader and longer-lasting sunscreen, into several products, including Neutrogena's sunscreens and anti-aging lotions.
10. It drives demand for products by adding new claims about them – like Listerine can prevent gingivitis
11. Its unit managers are constantly weighed against internally designed “composites” made up of competitors in each of J&J's three major industries, consumer, pharmaceuticals, and medical devices. The goal is to outpace the composite on a top- and bottom-line basis.
Marketing experiments
12. It built buzz for Rembrandt toothpaste as the whitener of choice for the hip and youthful, by hosting makeover parties, book readings, and concerts. Just before Valentine's Day, its Rembrandt team placed an ad on YouTube that featured a young couple kissing passionately for 30 seconds. It was so racy that the video site relegated it to its adult section prompting viewers to click on the ad 180,000 times.
13. In 2006, it opened a satellite office in New York staffed by designers who spend their days devising fresh ways to serve up decades-old products, from how they're packaged to how they're displayed on store shelves.
14. It sponsors more than 700 baby centers in China to teach Chinese parents the art of therapeutic touch
15. It expanded a consumer research center in India in 2004, and has just broken ground on a similar center in Shanghai to garner insights on how to tailor products to local markets
16. It is using Pfizer to plug some holes in its geographic reach, for example, in Mexico
Acquisitions + new products + new uses of old products + marketing buzz + an eye on the competition = REVENUE.
[Click here for full story at: BUSINESSWEEK.COM]
EXPENDITURE STRATEGY - J&J
1. J&J’s merger with Pfizer will allow it to squeeze $500 million per year out of its cost structure and enable it to break even on the transaction in 2009--a year earlier than expected.
2. It is increasing its quarterly dividend, this time by 10.7%.
Cost savings are jewels under the feet of mergers and acquisitions
[Click here for full story at: BUSINESSWEEK.COM]
2. It is increasing its quarterly dividend, this time by 10.7%.
Cost savings are jewels under the feet of mergers and acquisitions
[Click here for full story at: BUSINESSWEEK.COM]
REVENUE STRATEGY - EBAY
1. eBay has been buying furiously to move beyond its auction-house identity, and a new raft of services will spread its reach even further
2. It has spent more than $6 billion over the past five years to buy up such tech assets as Internet-phone operation Skype, online payments service PayPal, ticket reseller StubHub, a host of classified sites around the world, including a 25% interest in Craigslist, and Kurant, whose technology is used to set up online “storefronts” separate from eBay.
3. It will release San Dimas, a product developed with Adobe technology, that lets buyers and sellers download software so they can monitor their auctions and make purchases while working on a separate desktop application. It puts eBay's presence in front of users in a more ubiquitous way.
4. It feels it has to make it easy for folks who never would have bought or sold on eBay to set up little versions of its e-commerce engine on their own sites. Technology it acquired through Kurant (renamed ProStores) is helping new users set up online stores
5. In April, it began testing a tool dubbed To Go that enables buyers and sellers to embed software, known as a widget, in a site. That lets anyone on the site keep an eye on eBay auctions without actually having to switch over to eBay.com.
If buyers and sellers don’t come to your market, take your market to them.
[Click here for full story at: BUSINESSWEEK.COM]
2. It has spent more than $6 billion over the past five years to buy up such tech assets as Internet-phone operation Skype, online payments service PayPal, ticket reseller StubHub, a host of classified sites around the world, including a 25% interest in Craigslist, and Kurant, whose technology is used to set up online “storefronts” separate from eBay.
3. It will release San Dimas, a product developed with Adobe technology, that lets buyers and sellers download software so they can monitor their auctions and make purchases while working on a separate desktop application. It puts eBay's presence in front of users in a more ubiquitous way.
4. It feels it has to make it easy for folks who never would have bought or sold on eBay to set up little versions of its e-commerce engine on their own sites. Technology it acquired through Kurant (renamed ProStores) is helping new users set up online stores
5. In April, it began testing a tool dubbed To Go that enables buyers and sellers to embed software, known as a widget, in a site. That lets anyone on the site keep an eye on eBay auctions without actually having to switch over to eBay.com.
If buyers and sellers don’t come to your market, take your market to them.
[Click here for full story at: BUSINESSWEEK.COM]
REVENUE STRATEGY - TALISMAN ENERGY
Fortuna Resources (Sunda) Ltd. unit of Talisman Energy Inc., the Canadian oil company spun off from BP Plc, is suing China's Cnooc Ltd. over a stake in a $5 billion liquefied natural gas venture in Indonesia for failing to offer a participating share in both Tangguh and onshore exploration rights acquired by Cnooc in mid-December 2006 for the Batanghari Block, or area, in central Sumatra.
Because:
1. In 1968 Warrior International Corp. entered into an agreement with Independent Indonesian American Petroleum Co. and Carver Dodge International Co., according to which if a partner acquires any exploration interests in Indonesia, it must offer the other parties a participating share.
2. Warrior International merged in 1984 with Warrior Oil Co., which was acquired by Paladin Resources Plc in 1999. In 2005, Paladin Resources was bought by Talisman for 1.27 billion pounds ($2.5 billion). Paladin Resources (Sunda) Ltd. then changed its name to Fortuna Resources (Sunda) Ltd.
3. Independent Indonesian American Petroleum's interest in the agreement was acquired by YPF Maxus Southeast Sumatra BV, a unit of Spain's Repsol YPF SA, according to the document. In January 2002, Cnooc paid $585 million to Repsol YPF SA, Spain's biggest oil company, for oil and gas fields in Indonesia.
4. Rights under a contract may pass from one company to another in a merger
Revenue can be lost or found in the fine print.
[Click here for full story at: BLOOMBERG.COM]
Because:
1. In 1968 Warrior International Corp. entered into an agreement with Independent Indonesian American Petroleum Co. and Carver Dodge International Co., according to which if a partner acquires any exploration interests in Indonesia, it must offer the other parties a participating share.
2. Warrior International merged in 1984 with Warrior Oil Co., which was acquired by Paladin Resources Plc in 1999. In 2005, Paladin Resources was bought by Talisman for 1.27 billion pounds ($2.5 billion). Paladin Resources (Sunda) Ltd. then changed its name to Fortuna Resources (Sunda) Ltd.
3. Independent Indonesian American Petroleum's interest in the agreement was acquired by YPF Maxus Southeast Sumatra BV, a unit of Spain's Repsol YPF SA, according to the document. In January 2002, Cnooc paid $585 million to Repsol YPF SA, Spain's biggest oil company, for oil and gas fields in Indonesia.
4. Rights under a contract may pass from one company to another in a merger
Revenue can be lost or found in the fine print.
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - DLF LTD
1. DLF Ltd., the developer attempting India's second-biggest share sale, may raise the maximum 96.3 billion rupees ($2.4 billion) it is seeking after a shortage of homes and offices spurred gains for rival Unitech Ltd.'s stock. (Unitech stock surged 33-fold in two years as Asia's fastest wage growth prompted more of the nation's 1.1 billion people to buy homes).
2. It will use the proceeds to build apartments and offices and increase land purchases in a market estimated to be seven times larger by 2015.
3. Residential space will account for about 71 percent of DLF'S 526 million square foot development plan, according to share-sale documents.
More investment = more revenue (in a growing market)
[Click here for full story at: BLOOMBERG.COM]
2. It will use the proceeds to build apartments and offices and increase land purchases in a market estimated to be seven times larger by 2015.
3. Residential space will account for about 71 percent of DLF'S 526 million square foot development plan, according to share-sale documents.
More investment = more revenue (in a growing market)
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - INTERNET VIDEOS
Celebrities are making quick, inexpensive videos that show off their range of talents on the internet because there's an opportunity for real revenue. Internet and TV companies are following close.
1. Sites such as ManiaTV pay the major celebrities who create content for their site, either directly or through an ad revenue-sharing agreement.
2. Sites such as FunnyorDie.com have yet to pull in profits, but their quickly growing audiences and celebrity-caliber content are grabbing the attention of advertisers.
3. The internet gives celebrities a way to access ad coffers more directly than they can on TV.
4. Yahoo has launched a host of branded channels featuring original online programming created by professionals and semi-professionals.
5. To stake their claim, traditional TV networks have brought original Web producers on staff to create original online content.
6. ABC hired celebrity video blogger Amanda Congdon, former host of Rocketboom, as a regular vlogger for its ABC News Now site
7. CBS acquired online finance show Wallstrip as well as online music community Last.fm.
The revenue rush on the internet takes exciting turns every day.
[Click here for full story at: BUSINESSWEEK.COM]
1. Sites such as ManiaTV pay the major celebrities who create content for their site, either directly or through an ad revenue-sharing agreement.
2. Sites such as FunnyorDie.com have yet to pull in profits, but their quickly growing audiences and celebrity-caliber content are grabbing the attention of advertisers.
3. The internet gives celebrities a way to access ad coffers more directly than they can on TV.
4. Yahoo has launched a host of branded channels featuring original online programming created by professionals and semi-professionals.
5. To stake their claim, traditional TV networks have brought original Web producers on staff to create original online content.
6. ABC hired celebrity video blogger Amanda Congdon, former host of Rocketboom, as a regular vlogger for its ABC News Now site
7. CBS acquired online finance show Wallstrip as well as online music community Last.fm.
The revenue rush on the internet takes exciting turns every day.
[Click here for full story at: BUSINESSWEEK.COM]
Saturday, June 9, 2007
SICK LEAVE
This is perhaps the second time I have ever been set back with a cold and respiratory tract infection in summer! The anti-biotic gives me a groggy head and a pain perhaps around the address of my liver
I groan and wonder whether the Fortune report of a couple of years ago still holds true about Bill Gates never ever having resorted to a sick leave during his entire working life!
And reportedly, he thrives on hamburgers. So should we actually reconsider our evangelical ham-burger bashing?
Sniff! Groan!
Cough! Cough! Groan!
I groan and wonder whether the Fortune report of a couple of years ago still holds true about Bill Gates never ever having resorted to a sick leave during his entire working life!
And reportedly, he thrives on hamburgers. So should we actually reconsider our evangelical ham-burger bashing?
Sniff! Groan!
Cough! Cough! Groan!
REVENUE STRATEGY - TOM FORD
Designer Tom Ford aims to capitalize on rising global demand for luxury goods that has swelled the industry's annual revenue to about 160 billion euros ($214 billion), according to consulting firm Bain & Co.
1. Directly owned shops will open in London, Milan, Los Angeles and Hawaii starting next year.
2. Lane Crawford Joyce Group has agreed to open at least 87 franchised stores in Asia. The franchised stores will be located in places including Beijing, Moscow and Dubai.
3. He plans to start distributing his apparel through department stores such as luxury retailers Neiman Marcus Group Inc. in the U.S. and Harrods in London.
4. He has signed accords with Italian men's wear maker Ermenegildo Zegna SpA to produce clothing and with Estee Lauder Cos. for fragrances.
Reputation is the soul of revenue and more revenue
[Click here for full story at: BLOOMBERG.COM]
1. Directly owned shops will open in London, Milan, Los Angeles and Hawaii starting next year.
2. Lane Crawford Joyce Group has agreed to open at least 87 franchised stores in Asia. The franchised stores will be located in places including Beijing, Moscow and Dubai.
3. He plans to start distributing his apparel through department stores such as luxury retailers Neiman Marcus Group Inc. in the U.S. and Harrods in London.
4. He has signed accords with Italian men's wear maker Ermenegildo Zegna SpA to produce clothing and with Estee Lauder Cos. for fragrances.
Reputation is the soul of revenue and more revenue
[Click here for full story at: BLOOMBERG.COM]
EXPENDITURE STRATEGY - TWO-WHEELER MAKERS (INDIA)
State Bank of India and other lenders will charge borrowers more for auto loans. GE Money, the consumer finance division of General Electric Co., stopped advancing new loans for purchasing motorcycles and scooters as it wants to concentrate resources on high growth and high profitability businesses in India. And the monsoon months (June to September) slow two-wheeler sales.
So:
1. Hero Honda Motors Ltd lowered output this month.
2. Bajaj Auto Ltd. will reduce production by as much as 10 percent to reduce stocks at dealerships
3. TVS, which makes about 55,000 motorcycles a month, has cut motorcycle production by as much 5,000 units a month.
So is it a sign of over investment that:
1. Hero Honda and its affiliates are spending 22 billion rupees to build two new factories, in addition to the existing two, near New Delhi?
2. Bajaj started a new factory in April in the northern state of Uttarakhand?
3. TVS opened a facility in the northern Himachal Pradesh state?
[Click here for full story at: BLOOMBERG.COM]
So:
1. Hero Honda Motors Ltd lowered output this month.
2. Bajaj Auto Ltd. will reduce production by as much as 10 percent to reduce stocks at dealerships
3. TVS, which makes about 55,000 motorcycles a month, has cut motorcycle production by as much 5,000 units a month.
So is it a sign of over investment that:
1. Hero Honda and its affiliates are spending 22 billion rupees to build two new factories, in addition to the existing two, near New Delhi?
2. Bajaj started a new factory in April in the northern state of Uttarakhand?
3. TVS opened a facility in the northern Himachal Pradesh state?
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - CELTEL
Mobile phones have proved very popular in Africa, where there is limited access to fixed-line telephones, especially in rural areas.
1. Celtel, Africa's third largest mobile phone company, has scrapped roaming charges for users in three more states Gabon, the Democratic Republic of Congo and Congo in addition to Tanzania, Kenya and Uganda.
2. Its One Network allows those subscribers to make calls at local rates and get incoming calls free.
3. It hopes to expand free roaming to its entire operations in 15 African states as soon as is practical.
Revenue derives from understanding the price elasticity of demand.
Will the scrapping of roaming charges be more than made up by volume?
[Click here for full story at: BBCNEWS.COM]
1. Celtel, Africa's third largest mobile phone company, has scrapped roaming charges for users in three more states Gabon, the Democratic Republic of Congo and Congo in addition to Tanzania, Kenya and Uganda.
2. Its One Network allows those subscribers to make calls at local rates and get incoming calls free.
3. It hopes to expand free roaming to its entire operations in 15 African states as soon as is practical.
Revenue derives from understanding the price elasticity of demand.
Will the scrapping of roaming charges be more than made up by volume?
[Click here for full story at: BBCNEWS.COM]
EXPENDITURE STRATEGY - NATIONAL SEMICONDUCTOR
1. National Semiconductor Corp., a maker of chips that manage power in electronic devices, announced an accelerated stock buyback valued at $1.5 billion as part of a program worth a total of $2 billion.
2. The company has an existing repurchase program valued at an additional $380 million.
3. The company also announced plans to sell $1 billion in bonds. The proceeds will be used to repay a bridge loan, which was taken out to help fund the share buybacks.
The name’s Bonds. Just Bonds.
They obviously lower expenses when Bond rates are lower than Bridge Loan rates and the return on investment.
[Click here for full story at: BLOOMBERG.COM]
2. The company has an existing repurchase program valued at an additional $380 million.
3. The company also announced plans to sell $1 billion in bonds. The proceeds will be used to repay a bridge loan, which was taken out to help fund the share buybacks.
The name’s Bonds. Just Bonds.
They obviously lower expenses when Bond rates are lower than Bridge Loan rates and the return on investment.
[Click here for full story at: BLOOMBERG.COM]
Tuesday, June 5, 2007
REVENUE STRATEGY - 3M
3M, once a leading innovator was stifling under the discipline of Six Sigma processes. While Six Sigma was invented as a way to improve quality, its main value to corporations now clearly is its ability to save time and money. Wharton School professor Mary Benner and Harvard Business School professor Michael L. Tushman, suggest that Six Sigma will lead to more predictable, incremental innovation at the expense of more blue-sky work. While process excellence demands precision, consistency, and repetition, innovation calls for variation, failure, and serendipity. 3M’s reputation as an innovator has been sliding.
So Now:
1. 3M has loosened the reins a bit by removing 3M research scientists' obligation to hew to Six Sigma objectives. These financially definitive outcomes were much more elusive in the context of a research lab.
2. It is opening the money spigot to help get the creative juices flowing - hiking spending on R&D, acquisitions, and capital expenditures. The overall R&D budget will grow 20% this year, to $1.5 billion.
3. Even more significant it is funneling cash into “core” areas of 3M technology, 45 in all, from abrasives to nanotechnology to flexible electronics.
4. In January, it sold its pharma business for $2 billion.
5. Its emphasis has shifted from profitability and process discipline to growth and innovation.
Premise 1: Invention is a disorderly process.
Premise 2: Disorder is the cradle of inefficiency and loss.
Inference: So invention begets loss.
WRONG!
[Click here for full story at: BUSINESSWEEK.COM]
So Now:
1. 3M has loosened the reins a bit by removing 3M research scientists' obligation to hew to Six Sigma objectives. These financially definitive outcomes were much more elusive in the context of a research lab.
2. It is opening the money spigot to help get the creative juices flowing - hiking spending on R&D, acquisitions, and capital expenditures. The overall R&D budget will grow 20% this year, to $1.5 billion.
3. Even more significant it is funneling cash into “core” areas of 3M technology, 45 in all, from abrasives to nanotechnology to flexible electronics.
4. In January, it sold its pharma business for $2 billion.
5. Its emphasis has shifted from profitability and process discipline to growth and innovation.
Premise 1: Invention is a disorderly process.
Premise 2: Disorder is the cradle of inefficiency and loss.
Inference: So invention begets loss.
WRONG!
[Click here for full story at: BUSINESSWEEK.COM]
REVENUE STRATEGY - SALESFORCE & GOOGLE
Salesforce and Google are forging closer ties.
1. Salesforce will introduce a version of its customer relationship management software that lets small companies buy Google text ads to promote their businesses, then manage leads that result from the campaigns from within Salesforce's product.
2. Salesforce and Google will show the result of technology Salesforce got when it bought startup Kieden in August, 2006, which lets Salesforce.com users manage Google ad campaigns.
3. They have combined Salesforce.com with Google Maps to help sales staff find meetings.
4. Google's OneBox appliance server lets companies search data inside Salesforce's program.
5. Salesforce sells Google's Docs & Spreadsheets software through its AppExchange online store.
There's the potential for more collaboration, including the ability for large companies to manage Google ad campaigns using Salesforce products.
Salesforce alone has not stopped paddling:
1. It has made three small acquisitions, including Koral Technologies,
2. It has spent more on snaring new customers than buying companies.
3. It manages itself to break even or post a slim profit as Wall Street values Salesforce's revenue more than its earnings
Revenue helps those who help themselves, alone or with co-crusaders
[Click here for full story at: BUSINESSWEEK.COM]
1. Salesforce will introduce a version of its customer relationship management software that lets small companies buy Google text ads to promote their businesses, then manage leads that result from the campaigns from within Salesforce's product.
2. Salesforce and Google will show the result of technology Salesforce got when it bought startup Kieden in August, 2006, which lets Salesforce.com users manage Google ad campaigns.
3. They have combined Salesforce.com with Google Maps to help sales staff find meetings.
4. Google's OneBox appliance server lets companies search data inside Salesforce's program.
5. Salesforce sells Google's Docs & Spreadsheets software through its AppExchange online store.
There's the potential for more collaboration, including the ability for large companies to manage Google ad campaigns using Salesforce products.
Salesforce alone has not stopped paddling:
1. It has made three small acquisitions, including Koral Technologies,
2. It has spent more on snaring new customers than buying companies.
3. It manages itself to break even or post a slim profit as Wall Street values Salesforce's revenue more than its earnings
Revenue helps those who help themselves, alone or with co-crusaders
[Click here for full story at: BUSINESSWEEK.COM]
REVENUE STRATEGY - CARPHONE WAREHOUSE
1. Carphone Warehouse Plc, Europe's largest mobile-phone retailer, is bundling services with its wireless products
2. Last year it began offering free high-speed Internet access with its fixed-line phone service to lure new subscribers from BT Group Plc and Virgin Media Inc.
3. It plans to open 150 to 200 stores in the U.S. with Best Buy Co. over the next 18 months. It is opening kiosks or booths in U.S. Best Buy stores after a five-month trial.
You can find more revenue in bundling and partnerships
[Click here for full story at: BLOOMBERG.COM]
2. Last year it began offering free high-speed Internet access with its fixed-line phone service to lure new subscribers from BT Group Plc and Virgin Media Inc.
3. It plans to open 150 to 200 stores in the U.S. with Best Buy Co. over the next 18 months. It is opening kiosks or booths in U.S. Best Buy stores after a five-month trial.
You can find more revenue in bundling and partnerships
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY – TATA TELESERVICES
1. Tata Teleservices Ltd., the phone services arm of India's $22-billion Tata Group, plans to borrow $400 million overseas to extend its network in the world's fastest-growing mobile-phone market.
2. It hired seven banks to arrange the seven-year loan.
3. It will spend 35 billion rupees ($862 million) to develop high-speed services and build base stations, towers and purchase telecommunications equipment.
Globalization may be one of the secrets of exponential revenue growth
[Click here for full story at: BLOOMBERG.COM]
2. It hired seven banks to arrange the seven-year loan.
3. It will spend 35 billion rupees ($862 million) to develop high-speed services and build base stations, towers and purchase telecommunications equipment.
Globalization may be one of the secrets of exponential revenue growth
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - KWG PROPERTY HOLDING
Guangzhou's property market is high-growth supported by wage growth. The average price of new housing surged 23 percent last year.
1. KWG Property Holding Ltd., a Chinese developer partly owned by a Morgan Stanley affiliate, accelerated property sales.
2. It has ten more projects under development, including landmark buildings such as Cosmos and International Finance Place.
3. Its hotels under development will help raise investment income to 15 percent of net income
4. It has bought land in Suzhou and Conghua. It may buy as much as 2 million square meters of land to support future growth.
Investment grants revenue, over investment does not.
[Click here for full story at: BLOOMBERG.COM]
1. KWG Property Holding Ltd., a Chinese developer partly owned by a Morgan Stanley affiliate, accelerated property sales.
2. It has ten more projects under development, including landmark buildings such as Cosmos and International Finance Place.
3. Its hotels under development will help raise investment income to 15 percent of net income
4. It has bought land in Suzhou and Conghua. It may buy as much as 2 million square meters of land to support future growth.
Investment grants revenue, over investment does not.
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - SANOFI-AVENTIS
Prostate cancer is the third-most-common cancer in the world and ranked sixth in cancers fatal to men
Sanofi-Aventis SA, the world's third- biggest drugmaker, developed Taxotere treatment for advanced prostate cancer. It had a 21 percent lower death risk than those on another treatment.
(Taxotere generated 449 million euros ($606 million) in sales for Sanofi in the three months ended March 31, 10 percent more than a year earlier)
Successful cutting edge R&D for our quest for survival will generate revenue.
[Click here for full story at: BLOOMBERG.COM]
Sanofi-Aventis SA, the world's third- biggest drugmaker, developed Taxotere treatment for advanced prostate cancer. It had a 21 percent lower death risk than those on another treatment.
(Taxotere generated 449 million euros ($606 million) in sales for Sanofi in the three months ended March 31, 10 percent more than a year earlier)
Successful cutting edge R&D for our quest for survival will generate revenue.
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - NIPPON MINING HOLDINGS
1. Nippon Mining Holdings Inc., Japan's biggest copper smelter and an oil refiner, may build a petrochemical plant in the country to produce the raw material used to make polyester for export to China. (China's economy expanded 11.1 percent in the first quarter of this year, spurring demand for plastics and polyester.)
2. It aims to increase investments in petrochemicals to offset slower gains in oil refining profits.
3. It plans to spend about 180 billion yen in the three years through March 2010, expanding chemicals and copper production.
4. It is conducting a feasibility study for a 100 billion yen production facility with an output about 150,000 metric tons of copper for the Caserones copper deposit in northern Chile
5. It will not bid at auctions for Peruvian copper deposits, citing several uncertainties
Revenue comes from growing markets and growing sectors, not from realms of uncertainties.
[Click here for full story at: BLOOMBERG.COM]
2. It aims to increase investments in petrochemicals to offset slower gains in oil refining profits.
3. It plans to spend about 180 billion yen in the three years through March 2010, expanding chemicals and copper production.
4. It is conducting a feasibility study for a 100 billion yen production facility with an output about 150,000 metric tons of copper for the Caserones copper deposit in northern Chile
5. It will not bid at auctions for Peruvian copper deposits, citing several uncertainties
Revenue comes from growing markets and growing sectors, not from realms of uncertainties.
[Click here for full story at: BLOOMBERG.COM]
Monday, June 4, 2007
REVENUE STRATEGY - BEST BUY
1. Best Buy Co. plans to win mobile-phone sales from the U.S. phone carriers that dominate the market by giving customers more choice and better service.
2. It teamed with Carphone Warehouse Plc, Europe's largest wireless retailer, after discovering U.S. shoppers were disgruntled (more than 80 percent of customers have trouble shopping for mobile phones). With Carphone Warehouse, Best Buy will be well positioned to draw customers from Circuit City Stores Inc. and RadioShack Corp. as well as the telephone companies themselves, AT&T Inc. and Verizon Wireless
3. Its push into wireless services should improve market share and profit with margins 11 percentage points higher than televisions and computers. Neimeth said.
4. Best Buy, with Carphone Warehouse, is opening “hundreds” of Best Buy Mobile outlets in the U.S. over the next four years that sell only handsets, accessories and calling plans. The stores average about 1,000 square feet.
5. It will expand wireless departments in its more than 800 U.S. stores, increasing phone selection by 25 percent to about 90, and giving salespeople four times more training.
6. For the first time, Best Buy's new stores and cell-phone departments will have chairs for customers, offering a place to sit while signing up for a calling plan.
7. Best Buy Mobile stores will sell plans by AT&T, Sprint Nextel Corp., Verizon Wireless, a joint venture of Verizon Communications Inc. and Vodafone Group Plc, and Amp'd Mobile.
8. It is expanding in China and focusing on profitable consumers rather than products.
9. Carphone Warehouse gives Best Buy expertise in selling mobile phones, while Carphone gets Best Buy's trademark customer service Geek Squad that goes to homes to install computers and solve electronics- related problems.
Resolving customer grouses = revenue
[Click here for full story at: BLOOMBERG.COM]
2. It teamed with Carphone Warehouse Plc, Europe's largest wireless retailer, after discovering U.S. shoppers were disgruntled (more than 80 percent of customers have trouble shopping for mobile phones). With Carphone Warehouse, Best Buy will be well positioned to draw customers from Circuit City Stores Inc. and RadioShack Corp. as well as the telephone companies themselves, AT&T Inc. and Verizon Wireless
3. Its push into wireless services should improve market share and profit with margins 11 percentage points higher than televisions and computers. Neimeth said.
4. Best Buy, with Carphone Warehouse, is opening “hundreds” of Best Buy Mobile outlets in the U.S. over the next four years that sell only handsets, accessories and calling plans. The stores average about 1,000 square feet.
5. It will expand wireless departments in its more than 800 U.S. stores, increasing phone selection by 25 percent to about 90, and giving salespeople four times more training.
6. For the first time, Best Buy's new stores and cell-phone departments will have chairs for customers, offering a place to sit while signing up for a calling plan.
7. Best Buy Mobile stores will sell plans by AT&T, Sprint Nextel Corp., Verizon Wireless, a joint venture of Verizon Communications Inc. and Vodafone Group Plc, and Amp'd Mobile.
8. It is expanding in China and focusing on profitable consumers rather than products.
9. Carphone Warehouse gives Best Buy expertise in selling mobile phones, while Carphone gets Best Buy's trademark customer service Geek Squad that goes to homes to install computers and solve electronics- related problems.
Resolving customer grouses = revenue
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - THE THEORETICAL DIVIDE
One school of management professionals is managing the well understood parts of business with dazzlimng efficiency using algorithmic decision-making techniques and using highly sophisticated software.
Another school of management professionals is delving into the mysteries and heuristics of how products interact with their customers' lives in ways that a big quantitative, algorithmic survey never will. For example, how do teenagers think about their cell phones? And guess what? They don't think of them as phones!
Are both right? Are both wrong? If not, which is righter? Is their a middle path?
[Click here for full story at: BUSINESSWEEK.COM]
Another school of management professionals is delving into the mysteries and heuristics of how products interact with their customers' lives in ways that a big quantitative, algorithmic survey never will. For example, how do teenagers think about their cell phones? And guess what? They don't think of them as phones!
Are both right? Are both wrong? If not, which is righter? Is their a middle path?
[Click here for full story at: BUSINESSWEEK.COM]
EXPENDITURE STRATEGY - FLEXTRONICS
Flextronics International Ltd, maker mobile of phones for Sony Ericsson Mobile Communications and the Xbox 360 game console for Microsoft Corp, agreed to buy smaller rival Solectron Corp. for about $3.6 billio
1. Flextronics may eliminate as many as 1,500 jobs.
2. It has moved production to lower-cost countries such as India to improve profitability
3. It will close some factory space in North America and Western Europe.
4. The combination will generate at least $200 million in after-tax cost savings in 18 to 24 months.
This is the cost saving trend: cut jobs, close factories, move to cheaper locations
[Click here for full story at: BLOOMBERG.COM]
1. Flextronics may eliminate as many as 1,500 jobs.
2. It has moved production to lower-cost countries such as India to improve profitability
3. It will close some factory space in North America and Western Europe.
4. The combination will generate at least $200 million in after-tax cost savings in 18 to 24 months.
This is the cost saving trend: cut jobs, close factories, move to cheaper locations
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - FLEXTRONICS
1. Flextronics International Ltd, maker mobile of phones for Sony Ericsson Mobile Communications and the Xbox 360 game console for Microsoft Corp, agreed to buy smaller rival Solectron Corp. for about $3.6 billion to expand in the market for electronics manufacturing for companies such as mobile-phone makers.
2. The Solectron deal will add contracts with Cisco Systems Inc. and Sun Microsystems Inc.
3. Flextronics has expanded its product range.
4. Solectron's strength in the high-end computing and telecom segments will be an invaluable addition.
5. The combined company will have more than $30 billion in annual sales and about 200,000 employees.
Big fish eat small fish and become bigger than their sum by synergy
[Click here for full story at: BLOOMBERG.COM]
2. The Solectron deal will add contracts with Cisco Systems Inc. and Sun Microsystems Inc.
3. Flextronics has expanded its product range.
4. Solectron's strength in the high-end computing and telecom segments will be an invaluable addition.
5. The combined company will have more than $30 billion in annual sales and about 200,000 employees.
Big fish eat small fish and become bigger than their sum by synergy
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - SUZLON ENERGY
Governments worldwide are turning to wind power for their energy needs to cut carbon emissions and reduce dependence on coal and crude oil.
1. Suzlon Energy Ltd., India's biggest wind-turbine maker, hired three banks ABN Amro Holding NV, ICICI Bank Ltd. and State Bank of India Ltd. to arrange a 1.3 billion euro ($1.75 billion) loan to buy a 25 percent stake in Germany's Repower Systems AG.
2. The loan will be used to refinance existing debt and to pay for the acquisition.
3. Suzlon took out a 450 million euro loan in March last year to buy wind-turbine gearbox maker Hansen transmissions International NV for 465 million euros.
How many ways can you get revenue from power without burning coal or oil?
One of the answers my friend is blowing in the wind.
[Click here for full story at: BLOOMBERG.COM]
1. Suzlon Energy Ltd., India's biggest wind-turbine maker, hired three banks ABN Amro Holding NV, ICICI Bank Ltd. and State Bank of India Ltd. to arrange a 1.3 billion euro ($1.75 billion) loan to buy a 25 percent stake in Germany's Repower Systems AG.
2. The loan will be used to refinance existing debt and to pay for the acquisition.
3. Suzlon took out a 450 million euro loan in March last year to buy wind-turbine gearbox maker Hansen transmissions International NV for 465 million euros.
How many ways can you get revenue from power without burning coal or oil?
One of the answers my friend is blowing in the wind.
[Click here for full story at: BLOOMBERG.COM]
Friday, June 1, 2007
REVENUE STRATEGY - PEPSI
Indian villagers charged that PepsiCo—which has named India as a top strategic priority—consumes excessive groundwater in their parched communities. Even worse was the repeated claim that the snack and beverage company, along with rival Coca-Cola Co., were allowing pesticide residue from groundwater to get into locally made soda. Blasted with e-mail alerts from Centre for Science and Environment, journalists and bloggers worldwide leapt on the story, raising the specter of a global consumer reaction just when soda makers were coming under harsh scrutiny for contributing to obesity.
What did Pepsi do?
1. It held a rare joint press conference with Coke in New Delhi, offering data that contradicted CSE's and saying the company followed the same strict standards all around the world.
2. Pepsi executives joined CSE’s Sunita Narain at sometimes contentious meetings over the next two years aimed at helping the Bureau of Indian Standards (BIS) arrive at guidelines on pesticides, caffeine, and even PH levels in soda.
3. It met with editorial boards, presented its own data in press conferences, and ran TV commercials featuring its then-president in India, Rajeev Bakshi, walking through a gleaming laboratory.
4. It also stepped up efforts to reduce water usage in its plants. A bottling facility, in the city of Panipat, near New Delhi, has reduced water usage to 8.6 liters for every case of two dozen 8-oz. bottles, down from 35 liters at the start of 2005. Workers post Japanese-inspired kaizens, or suggested improvements, to reduce waste, illustrating the ideas with cartoons and stick figures for added clarity.
5. After Indra Nooyi became Pepsi CEO she visited India, spoke widely of Pepsi's initiatives to improve water and the environment and her own fond memories of growing up in the country. One of her main themes: "This is a company with a soul." Indian newspapers and television covered her tour lavishly and with praise. Soda sales improved, although they ended 2006 flat compared with rapid double-digit growth in China.
6. It may even invest in educating communities in how to farm better, collect water, and then work with industry to retrofit plants and recycle.
Reputation is the soul of revenue.....
[Click here for full story at: BLOOMBERG.COM]
What did Pepsi do?
1. It held a rare joint press conference with Coke in New Delhi, offering data that contradicted CSE's and saying the company followed the same strict standards all around the world.
2. Pepsi executives joined CSE’s Sunita Narain at sometimes contentious meetings over the next two years aimed at helping the Bureau of Indian Standards (BIS) arrive at guidelines on pesticides, caffeine, and even PH levels in soda.
3. It met with editorial boards, presented its own data in press conferences, and ran TV commercials featuring its then-president in India, Rajeev Bakshi, walking through a gleaming laboratory.
4. It also stepped up efforts to reduce water usage in its plants. A bottling facility, in the city of Panipat, near New Delhi, has reduced water usage to 8.6 liters for every case of two dozen 8-oz. bottles, down from 35 liters at the start of 2005. Workers post Japanese-inspired kaizens, or suggested improvements, to reduce waste, illustrating the ideas with cartoons and stick figures for added clarity.
5. After Indra Nooyi became Pepsi CEO she visited India, spoke widely of Pepsi's initiatives to improve water and the environment and her own fond memories of growing up in the country. One of her main themes: "This is a company with a soul." Indian newspapers and television covered her tour lavishly and with praise. Soda sales improved, although they ended 2006 flat compared with rapid double-digit growth in China.
6. It may even invest in educating communities in how to farm better, collect water, and then work with industry to retrofit plants and recycle.
Reputation is the soul of revenue.....
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - DELL
1. Dell has reinstated its founder Michael Dell to lead the firm out of its sagging fortunes replacing his successor Kevin Rollins, who leaves the firm with immediate effect.
2. It has been overhauling virtually every part of the company from the executive ranks to customer service.
3. It will bear new expenses of selling through 3000 Wal-Mart stores. It must assemble a large inventory of machines to keep in stock at each Wal-Mart store as well as manage costs associated with selling through an intermediary.
4. It is likely to continue to increase spending for customer service and technical support.
5. It may boost spending for design and engineering
6. It has started a comprehensive review of costs and plans to eliminate about 8,800 employees over the coming 12 months to deliver better value to customers.
Eliminating staff delivers better value to customers? Or shareholders?
[Click here for full story at: BUSINESSWEEK.COM]
[Click here for full story at: BBCNEWS.COM]
2. It has been overhauling virtually every part of the company from the executive ranks to customer service.
3. It will bear new expenses of selling through 3000 Wal-Mart stores. It must assemble a large inventory of machines to keep in stock at each Wal-Mart store as well as manage costs associated with selling through an intermediary.
4. It is likely to continue to increase spending for customer service and technical support.
5. It may boost spending for design and engineering
6. It has started a comprehensive review of costs and plans to eliminate about 8,800 employees over the coming 12 months to deliver better value to customers.
Eliminating staff delivers better value to customers? Or shareholders?
[Click here for full story at: BUSINESSWEEK.COM]
[Click here for full story at: BBCNEWS.COM]
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